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Companies in the timber industry / Daily News / Sawmilling / Europe / Global
June 29, 2016

Södra to divest Södra Wood Rottne

Södra to divest Södra Wood Rottne

Södra is to divest Södra Wood Rottne in Rottne to Ess-Enn Timber in Skruv. Trade union negotiations are being initiated regarding the transfer of the operation. The transfer is scheduled to take place on 1 September. Södra Wood Rottne produces glued boards in pine and spruce and has 15 employees.

“Rottne is a small operation that we consider would be better driven by another owner as we have limited synergies.  However, we will continue to offer the product in our range, although we will no longer produce it ourselves,” says Jörgen Lindquist, President of the Södra Wood business area.

The buyer is Ess-Enn Timber AB, formed in 1981, which is one of the leading producers of glued boards in Scandinavia, with an annual capacity of 18,000 cubic metres. The company has its existing production in Skruv, where planing operations are also conducted. The company has sales of about SEK 100 million and 40 employees.

“We are confident about this acquisition, which will give us economies of scale, longer production series and thus more cost-efficient production. With increased volumes, we will achieve savings effects in administration, purchasing and sales. A cost-efficient operation is a necessity in facing up to the competition from the Baltic states and Poland. We will investigate in an unbiased manner how to operate the business in Rottne moving forward and the way in which it will be integrated with the operation in Skruv,” says Göran Johansson, Chairman of the Board of Ess-Enn Timber AB.

Södra is implementing structural changes in its sawmill and planing operations to strengthen the company’s long-term competitiveness.

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