Bergs adds planing mill and pellet facility through takeover

19 July 2019

Swedish sawmiller Bergs Timber AB has acquired AB Fogelfors Bruk, which comprises a planing mill and a wood pellet / heating log production plant.

Bergs paid SKr48m in the transaction, SKr18m of which was paid in newly issued shares in Bergs Timber.

The acquired business mainly consists of a completely new plant for the production of wood pellets with a capacity of 100,000 tones per year. In addition, there is capacity for a production of 20,000 tons of heating logs.

A great part of the raw material will be retrieved from the by-products generated at Bergs Timber's Swedish plants.

The other part of the acquired company consists of a planing mill, currently with a production of approximately 30,000m3 planed goods per year. The facility is in eastern Småland with favourable transport distances from Bergs Timber's other facilities.

“Through the acquisition, we secure our future sales of by-products while at the same time increasing the degree of processing of the group's total production,” said Peter Nilsson, president and CEO of Bergs Timber.