Production from Jämtlamell’s 140,000m3 sawmill at Stugun will be co-ordinated with that of SCA’s own seven sawmills across Sweden.

SCA is waiting for the European competition authorities to sanction the deal.

SCA already supplies 60% of the raw material which enters Jämtlamell’s production lines, and SCA Timber Supply in Stoke-on-Trent has an ongoing marketing agreement for its standard sawn and value-added window, door, moulding, flooring and panel products in the UK.

“We have the option to purchase the sawmill outright within the next five years,” said Ulf Larsson, SCA Timber AB president.

“Stugun fits very well into our production set-up. In the longer term, SCA Timber will become an attractive partner for medium-sized sawmill companies who recognise our strong position in important markets and our drive to develop new products and business strategy.

“The sawmilling industry in Europe, and especially in Sweden, will continue to change at a rapid pace. SCA will take an active role in this change,” he added.