Holmen to invest SEK400m to increase value-adding and capacity at Iggesund Sawmill
13 December 2021Swedish sawmiller Holmen is investing SEK400m to increase production at its Iggesund Sawmill by 20% as well as adding construction timber on top of its joinery products range.
The move is a further step in Holmen’s strategy to grow the wood products business and contribute to the green transition.
“Following the acquisition of Martinsons and the expansion of Braviken, the investment in Iggesund Sawmill is the next step in strengthening our position in wood products,” said Henrik Sjölund, Holmen’s president and CEO.
The investment will enable the sawmill to switch from lower grade joinery spruce to construction timber in both spruce and pine. This will increase the value added and improve the market mix by increasing the share sold to Scandinavian builders’ merchants.
The investment in log sorting and a new planing facility will remove bottlenecks and is expected to increase the sawmill’s capacity to just over 450,000m3.
In the past 12 months, the Holmen Wood Products business area has produced 1.5 million m3 of wood products, achieving a turnover of SEK4.7bn and an operating profit of SEK1.4bn. Production takes place at five sawmills.
Additionally, there is a project business working on producing complete structural frames in cross-laminated timber.
