“Södra is focused on increasing the use of sustainable timber construction and wants to take part, and to stake out a position, in this growing market,” said Jörgen Lindquist, president of Södra’s wood business division.

“Production is scheduled to commence in early 2019. The facility will have an annual capacity of about 5,000m³ per shift,” he added.

The investment is part of Södra’s strategic process of building long-term relationships across the value chain. An extensive project has been on-going for 12 months to develop the profitability of Södra’s existing sawmills and to re-assess the type of timber engineering that best suits Södra’s structure, position and markets.

“Södra’s main mission is to strengthen family forestry by offering new and innovative products” said Lars Idermark, CEO of Södra.

“We have identified CLT as an interesting product and want to take part, and to stake out a position, in a growing market.

“But we are also aware that this will require heavy investment, will take time, and carries business risks. That is why we are starting out small.”