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January 13, 2016

Sweden: Rörvik Timber closes two sawmills

Sweden: Rörvik Timber closes two sawmills

Swedish company Rörvik Timber decided to close down its Sandsjöfors and Tvärskog sawmills, due to low business outcome and high prices for their products. This decision comes after the sawmills have had big losses for some years now and the measures taken to improve this issue haven’t brought any profit.

Around 43 people will be affected in Tvärskog, while another 38 people in Sandsjöfors will lose their jobs, as the negotiations with the trade unions are already taking place.

Per Rodert, managing director of Rörvik Timber states that "in southern Sweden there are many sawmills. In order to achieve a better balance between levels of production and availability of raw materials it will be necessary to resort to further restructuring. To achieve long-term competitiveness of sawmills, we must concentrate on fewer units.”

Rörvik Timber Group owns another five sawmills.

Meanwhile, the investment and the development of the Linghem sawmill are going on according to the established plans. The sawing line has already been installed and will be ready to function starting March 1, 2016.

Rörvik invested almost 25 million kronor by the end of 2015, to increase drying capacity and flexibility for sawing pine and spruce. Once the Sandsjöfors will be closed, Rörvik will have to handle its customers.

The Swedish market will have a positive outcome in 2016, according to the estimates made by Rörvik, but the sale of the Swedish sawmills in main markets from North Africa and the Middle East will still be very weak.

 

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