Rörvik to sell last sawmill

27 March 2017

Rörvik Timber has effectively exited the Swedish sawmilling sector following news of the SKr48m agreement to sell its Linghem sawmill to Holmen.

Holmen’s agreement to acquire the Linghem mill follows recent news of Rörvik’s decision to close two loss-making sawmills in Boxholm and Myresjöfönster.

The sawmill, which uses smaller logs than Holmen’s Braviken mill 40km away from Linghem, has a new saw line with capacity to produce 75,000m3 per year.

“The acquisition of Linghem sawmill forms part of our strategy to make use of a greater proportion of the raw material in the area around our sawmills,” said Johan Padel, head of Holmen’s wood products business area.

“It makes us an even better partner in relation to the forest owners. Linghem’s products supplement Holmen’s current business structure and reinforce the company’s market position in Sweden and the UK.”

A planing mill is also included in the sawmill, which employs 28 people. The takeover has been planned to take place on April 28.

Ongoing measures are being taken at Holmen’s two existing sawmills to refine the business. At Braviken sawmill two types of wood are now being sawn, distribution has been streamlined and the degree of added value is being increased through the construction of a wood treatment plant.

At Iggesund sawmill, investments in the plant have increased capacity by 15% over the past year. Furthermore, opportunities to establish production of solid wood wall modules (cross laminated timber) are being investigated as a result of the greater interest in wood construction.

Last year ATA Timber acquired two Rörvik Timber sawmills at Sandsjöfors and Tvärskog, while VIDA Group acquired Rörvik’s mill and treatment plant in Tranemo.