Vida AB is to it permanently close its sawmill operations in Urshult and Orrefors, reducing group lumber production capacity by 265,000m3 annually.
The decision is due to an extended period of imbalance between production capacity and access to fibre supply in Southern Sweden – a situation anticipated to persist for the foreseeable future.
Vida says the closures are part of a long-term strategic direction to further strengthen its competitiveness and create the best possible conditions for continued growth through investments in the company’s remaining 13 sawmills.
Vida has conducted a review of its sawmill structure and fibre supply and determined that the imbalance means difficulties in operating and developing Vida’s 15 existing sawmills and requires a change to Vida’s operating platform.
“Closing our Urshult and Orrefors operations is a difficult but necessary decision,” said Karl-Johan Löwenadler, CEO of Vida AB.
“I understand that these closures impact many of our employees, their families, and communities. We are committed to supporting our employees with transition support and will work closely with trade union parties and other relevant actors. Our employees are Vida’s most important resource, and we take our responsibility as an employer very seriously in this situation.”
“By concentrating our resources into fewer and more specialized units, we can continue to develop Vida in a competitive and sustainable way.”
“Our focus is to continue investing in and developing our sawmills and other business areas. While there is muted demand for wood products currently, we strongly believe in wood as the material of the future and we are confident that the demand will be there in the long term,” says Karl-Johan Löwenadler, CEO of Vida AB.
Vida’s remaining 13 sawmills will continue to produce 3,000,000m3 annually.
