Södra announced more than SEK 200 million (around USD 22.5 million) investments in its Långasjö, Värö, and Orrefors sawmills in Sweden. According to the announcement, the investments are part of the restructuring programme, presented in June 2016. The investment programme will be completed during the third quarter 2017.
- Långasjö sawmill (SEK 110 million): increase of production capacity from 280,000 to 360,000 m³, takeover distribution centre from Torsås
– Wood stacker
– Renovate green sorter bins
– Renovate woodchips and shavings handling
– Warehouse and tongue and groove manufacturing
- Värö sawmill (SEK 75 million): production streamlining to attain competitive operations
– Profiling in the sawing line, control system, trimmer and wane edge scanner, buffer before stacker, two mobile driers
- Orrefors sawmill (SEK 30 million): installation of a large boiler and drying facility, which will enable production increases in the future
– Existing double-boiler limits drying capacity to about 60,000 m³sv.
– Moving the boiler in Åtvidaberg and investing in an additional wood dryer, the entire sawn volume can be dried
Jörgen Lindquist, Business Area President for Södra Wood, commented:
“The projects in Långasjö started in November and are scheduled to be complete this autumn. We will replace the old small-dimension timber saw line with a new profiling curve sawing line, and thereby simplify and streamline throughput at the saw. In addition, we will build a new stacker and binding stick stacker and also install a completely new wood dryer. We will also construct a new 8,000-square-metre warehouse. The project includes relocating distribution to the Swedish building trade from our Torsås sawmill, which will be closed after the summer.
In addition to these investments, we are working intensively at the Värö sawmill, as well as every other Södra sawmill, with Lean principles so that staff, with all their expertise, can operate the sawmill machines as safely and efficiently as possible.
The investment [in Orrefors] 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.”
Earlier Södra got CMP certification for production of certified pre-painted cladding.
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.