Varo is one of the largest, most modern sawmills of its kind in Europe. It was relocated from Klausner in Germany in 2011, and the 20% increase in output through a planned extra shift from August or September is the production level Södra wanted to finally reach.
The year-on-year improvement in the UK timber market, albeit from a low base, has been a boost for the company, for which export accounts for about two-thirds of turnover. And roughly half of Värö’s output is shipped to the UK, distributed mainly through Crown Timber, in which Södra is a shareholder.
Södra Timber president Håkan Svensson and Crown managing director Stuart McIntyre are both agreed that the positive UK situation has been diluted to an extent by excessive overall shipments. This was partly because the UK floods earlier this year created expectations of a boom in timber demand that actually failed to materialise.
But the high availability of Nordic timber, as a result of the mild winter and some severe storms, is thought largely to blame.
The temporary timber glut aside, however, Mr McIntyre believes the increase in UK timber frame construction augers well for business.
"In a strong construction market, and with a shortage of skilled labour, builders need to complete projects faster," he said. "Timber frame is the ideal solution, increasing build speed, and focusing much of the skilled work in the factory before delivery to site."
Key products for Crown, he added, are TR26 truss timber and CLS for the timber frame industry, and plain carcassing for timber merchants. There’s also good news from Södra Timber’s other main export market, Benelux, which has fared better than expected, according to Mr Svensson.
And, he added, economic recovery and the rally in housebuilding have also seen Södra strengthening its foothold in Ireland.
