Moelven Group informed that the Board of Moelven Norsälven AB is considering closure of the sawmill. The company explains need in the step with extensive requirements for investments at the site.
According to the announcement, employee representatives have been formally asked to attend MBL negotiations pursuant to section 19. Negotiations have been initiated. 44 employees risk losing their jobs. The company has annual revenues of just below SEK 200 million.
Anders Lindh, Division Manager of Moelven Timber, commented:
“Considering closing a company is never easy. Unfortunately, Moelven Norsälven currently has a very low technical status and requires extensive ongoing maintenance to keep up operations. We now recognize that it is a question of time with regard to how long operations can continue in a proper manner without implementing improvement measures in the shape of major investments.
However, this must be viewed in the context of the economic situation for Swedish sawmills being the best in 10 years. Overall, the company has posted a loss in the five-year period from 2012 to 2016.
We nevertheless believe that this will not result in sufficient long-term profitability.”
Two other large sawmills in Sweden – Moelven Valåsen AB and Moelven Notnäs AB – are in the midst of a development programme involving methodology, investments and organizational development.
Earlier Moelven invested into a new HCH forklift-loaded chamber kilns in Sweden.
The company is operating its units located in Scandinavia and raw materials obtained from forests close to the production facilities. Scandinavia is also Moelven’s principal market. The Group has its head office at Moelv in Norway, and comprises 49 production units and 34 sales, service and assembly offices. Most of the production units are companies and premises with strong local roots in rural areas and small communities in south-east Norway and west central Sweden. The Group has approx. 3,400 employees and an annual turnover of NOK 9 billion (around USD 1100 million).