Crown has acquired the former Haminan Veistosaha (Havesa) sawmill in the port of Hamina, in the south-east of Finland, especially to secure its expertise in TR26 and CLS production.
The company previously sourced some of its softwood products from Havesa, being its largest customer for many years, but the mill ceased operations a year ago after a period of administration and has since been idle.
Crown’s chief executive Stuart McIntyre told TTJ that the mill assets were acquired on October 17 from receivers. A 17-strong workforce, including management, has since been recruited by Crown and the machinery is currently being assessed.
"We hope it will start up within a couple of weeks, so it has been very encouraging," he said.
The mill will run initially on one shift – producing an estimated annual volume of 60,000m3, with the aim of moving to two shifts next year.
"This particular mill has always supplied products to us. It was designed to produce TR26 and CLS, which are ideal products for us and we still think it’s a very efficient mill. It’s always been a specialist mill, not producing general products to all kinds of markets. It has had some bad luck, but we feel that the company can be successful again."
Mr McIntyre said the mill would operate as a sister company to Crown Timber and while its main focus would be on supplying Crown, products would probably be sold to other customers as well.
He emphasised that Havesa was supplying additional volumes for Crown, and the company did not anticipate reducing any purchase volumes for its current suppliers.
"We feel that the timing of this deal, with initial signs of improving demand levels in the UK and Ireland becoming apparent, is good."
"There is definite potential to increase CLS and TR26 sales by 60,000m3. There is good demand for products going into new housing."
The mill will produce TR26 truss timber and C16/C24 CLS in certain key lengths for Crown’s UK and Irish distribution business.