Mayr-Melnhof invests in Swiss Timber mill

Mayr-Melnhof (MM) is investing CHF4.5m in its Swiss Timber sawmill at Domat/Ems.

MM said conditions had not improved for the Swiss Timber mill since it acquired the business a year ago, but the investment in kilning facilities would show its commitment to the operation and double drying capacity.

Eight new drying chambers will be installed and sorting machines enlarged, with the project being completed by February, 2010.

“With this commitment, we will show that despite difficult economic times we are developing Domat/Ems as a site of strategic importance within the Mayr-Melnhof Group,” said Joseph Dringel, CEO of MM.

Mr Dringel said the sharp appreciation of the Swiss franc by around 10% since mid-2008 had not helped Swiss Timber, compared to competitors in Sweden, Romania and other Eastern European companies.

He said the international timber market remained very volatile and MM faced “massive challenges”, while it was too early to talk about a sustainable recovery. The winter period is also likely to see a seasonal reduction in construction activity.