Rorvik Timber to close two sawmills11 January 2016
Rorvik Timber is to close its Sandsjöfors and Tvärskog sawmills because of a weak business climate and continued high prices for wood raw material.
The directors said the sawmills had experienced heavy losses and measures taken to improve profitability have not succeeded.
The closures will affect around 43 people in Tvärskog and about 38 people in Sandsjöfors. Negotiations with the unions have begun.
“In southern Sweden there are many sawmills,” said Per Rodert, MD for Rorvik Timber.
“A structural rationalization is needed in order to achieve a better balance between production and availability of raw materials.
“To achieve a long-term competitive sawmilling industry requires a concentration on fewer units.”
Rorvik Timber Group has a further five sawmills and will now concentrate operations on these units, with investment and expansion of the sawmill in Linghem continuing according to plan.
The kerf line currently being installed will be in operation from March 1.
Rörvik completed investments totalling about €25m in 2015 including increased drying capacity and increased flexibility for sawing pine and spruce.
Rorvik estimates the Swedish market will continue to develop positively in 2016 and that key markets in North Africa and the Middle East will continue to be very weak.