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July 20, 2020

Norra Skog to close sawmill in Sweden

Norra Skog to close sawmill in Sweden

On Friday, July 10, the last log at the Östavall sawmill in Ånge municipality, Sweden has been sawn.

The sawmill has been part of the forest owners' association Norrskog since the 1980s and is today run by Norra Skog, which was formed during the spring through a merger between Norrskog and Norra Skogsägarna.

The background to the closure is a lack of access to timber, something that the saw has suffered from for several years. Since the decision to close the saw was announced in the autumn of 2019, dialogue has taken place in various rounds with prospective buyers, but none of them has chosen to proceed in a deal.

''Some other companies have shown interest in the saw, but in their analyzes have come to the same conclusion as us, namely that with the current competitive situation in the sawmill industry, it will be problematic with future timber supply to Östavall,'' says Henrik Jönsson, Industry Manager at Norra Skog.

After the sawing is completed, a decommissioning process begins. Warehouses will be emptied at the same time as the equipment and premises are inspected to secure resale values. The saw's machines and equipment will then be moved to other saws within Norra Skog or sold. What will happen to the premises in the long term is uncertain, but a dialogue about this will now start with the municipality and other companies.

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