Södra intends to co-locate the units in Ronneby and Kallinge in Sweden. According to the announcement, , the new proposed location will be in Kallinge, where SEK 25 million is to be invested in upgrading to a paint system that is more environmentally sustainable, in new machinery and in improvements to the logistics centre.
The company expects that slightly more than 55 employees of the total 142 employees in Ronneby and Kallinge will be affected by the restructuring. Therefore, Södra starts Co-Determination in the Workplace Act (MBL) negotiations.
Peter Karlsson, segment manager for Interior Wood, commented:
“We are now planning to invest in line-based production in Kallinge to strengthen competitiveness and are moving the warehouse in Ronneby to Kallinge in autumn/winter 2017, which will also improve the work environment. We will then move production in summer 2018 and cease production and logistics in Ronneby. Processes in marketing, logistics, order handling and general administration will also be streamlined. There is strong demand for interior wood products, with growth in the building materials trade of more than 4 percent for the first six months of 2017. The proposed changes will improve conditions to establish competitive interior wood operations.”
These measures are expected to lead to efficiency enhancements. Over the past year, Södra has worked intensively with restructuring to increase the profitability of its interior products business:
- In June 2016, Södra Wood Rottne was divested to Ess-Enn Timber
- In early October, Nordingrå Trä was sold to Pro Unica AB and Södra Wood Föllinge to Rickard Eriksson
- On November 1,2016, Södra Wood Grimslöv was divested to the German company Sörnsen Holzleisten
- On July 1, 2017 Sörnsen also acquired UAB SIWood in Lithuania
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.