SCA Timber is to close two of its seven sawmills with the loss of 98 jobs citing the worst economic conditions for Swedish sawmilling in 40 years. Source: TTJ Online
Production at Vilhelmina and Holmsund in northern Sweden, two of the company’s smallest and least profitable sawmills will end next July.
Ten jobs will also go at the SCA Transforest terminal in Umeå due to reduced volumes.
“We have invested almost two billion krona in eight years,” said Jonas Mårtensson, president of SCA Timber. “There is not enough wood raw material for all sawmills to develop and we have had to focus our efforts on the ones with the best prospects.”
Employment is split evenly between the two mills. Vilhelmina produces 115,000m3 of Nordic spruce wood products per year and 30,000m3 of planed wood products.
Holmsund, which is outside Umeå, produces 90,000m3 of Nordic pine wood products.
“We are experiencing what are the most severe conditions for the Swedish sawmill industry in 40 years. The demand for sawn timber products is weak and prices are low. At the same time the price for raw material remains high,” Mr Mårtensson said.
“Finally, we have a currency situation that is challenging for the Swedish forest industry. This means that we need to cut down production and concentrate our operations at the most competitive units.
“Vilhelmina and Holmsund are our two smallest sawmills and the ones with the weakest profitability.”
