Södra announced a SEK 35 million investment into production expansion at its small-diameter timber sawmill in Orrefors, Sweden. According to the announcement, the company is installing a new boiler and drying facility to enable production increases in the future. The new facility will be put into operation in 2018.
The two existing biofuel boilers that currently serve the sawmill are to be replaced by a new, larger biofuel boiler of 6 MW instead of todays 2.5 MW. Currently, they are limiting factors for the sawmill’s capacity.
Jörgen Lindquist, Business Area President of Södra Wood, commented:
“This investment is necessary for profitability. Currently, there is insufficient boiler capacity, which means we must sell some goods undried. The investment will enable us to increase production and also dry the entire sawn volume.
The change of boiler will also enable the simultaneous expansion of wood drying through the addition of six chamber dryers. Following the investment, the sawmill will go from a drying capacity of about 60,000 cubic metres to approximately 105,000 cubic metres.”
The is supplied by Fröseke Industriservice AB
Södra is the economic association that unites more than 50,000 forest owners in southern Sweden. The Group’s three business areas are production of sawn and planed timber goods, interior products, paper pulp and biofuel. In recent years Södra has also become such a large producer of electricity. It employs 3,500 people in areas that range from forestry management and environmental conservation to accounting, sales and product development.