A further SKr20m will be invested in a new dryer, land and storage at its Torsås sawmill.

“The investment is needed to make us more efficient and competitive,” said Södra president Peter Nilsson.

“We need to keep pace with developments in the industry and cut our production costs. We are now gearing up for the future.”

The planing line, to operate on two shifts, will replace four existing planing lines at the mill, which produces 300,000m3 annually.

The line, incorporating automatic stress grading and camera sorting, will be commissioned in late 2008.