Sodra reduces capacity and will close two sawmills

The structural changes in the sawmill and planing operations are designed to strengthen the company’s long-term competitiveness.

Trade union negotiations have been initiated prior to closure of the softwood sawmills at Ramkvilla and Torsas, as well as production cuts at Monsteras and Varo. Overall, annual production capacity will be reduced by approximately 200,000m3 and approximately 150 employees will be affected by the restructuring.

At the same time, major strategic investments are being planned for the remaining sawmills. The hardwood sawmill at Djursdala is also currently undergoing a divestment process.

“On the basis of Sodra’s Group strategy, we have reviewed our entire sawmill structure and examined the need for long-term measures at each sawmill in terms of market, logistics, production costs and investment requirements,” said Jorgen Lindquist, President of the Sodra Wood business area.

“We have decided on this rational structure to improve logistics and raw material flows, and we will continue to streamline our operations in order to secure Södra’s future competitiveness.”

Investments are being planned for the sawmills in Langasjo, Varo and Orrefors in Sweden, with the largest investment will be made in Langasjo, where the production volume will increase from 280,000m3 to 360,000m3.

Sodra is also looking at possibilities for increased timber housing construction, through its subsidiary Trivselhus.