Södra is to invest more than SEK1bn in its Kisa sawmill as part of its strategy to strengthen its long-term competitiveness.
The group said the investment in the mill in Kinda municipality, southern Östergötland – one of the largest investments ever made in Södra’s sawmill operations – was crucial for the future of the sawmill and will contribute significantly to the growing need for timber construction in the green transition.
“This is a forward-looking investment for Södra, where we continue to make more of every tree and strengthen our position in a location close to both raw materials and the market,” said Lotta Lyrå, CEO of Södra.
“Södra is stronger with Kinda than without, and the alternative would have been to close the sawmill. Instead, we choose to invest in our long-term competitiveness.”
The sawmill’s location in a growing region provides opportunities to increase market share and ensure a strong local presence.
The implementation is expected to take place in stages and be fully operational by 2028. Once completed, the facility’s capacity will increase by 50%, reaching an annual volume of 300,000m3 of sawn timber. In addition, the investment includes a new pellet mill with an annual capacity of 25,000 tons of pellets.
“It’s a bold decision by Södra to invest in Kinda,” added Marcus Åsgärde, Head of Södra Wood Business Area.
“We are adding value and capacity, which strengthens our competitiveness and creates new opportunities going forward. This is an investment in the industry, in the potential of timber construction, and in meeting our customers’ long-term needs worldwide.”
