The Board of Moelven Norsälven AB is considering closure of sawmill in Vålberg, Sweden. The reason is that the investment needs at the plant are extensive, as the company says in the press release received by Lesprom Network.
The Chairman of the company, Division Manager Anders Lindh of Moelven Timber, says that even with extensive investment it will be difficult to achieve a future-oriented and profitable plant.
“Considering closing a company is never easy. Unfortunately, Moelven Norsälven currently has a very low technical status and requires extensive ongoing maintenance to keep up operations,” Lindh says.
Employee representatives have been formally asked to attend MBL negotiations pursuant to section 19. Negotiations have been initiated. 44 employees risk lose their jobs.
Lindh says that overall investment needs will total at least SEK 70 million ($8.75 million) in the next three years in order to provide hope for justifiable operations.
Two other large sawmills in Sweden – Moelven Valåsen AB and Moelven Notnäs AB – are in the midst of a development programme involving methodology, investments and organizational development.
“These two companies will have increased production capacity that can compensate for the reduction in production that an eventual closure of Moelven Norsälven will entail,” Lindh says.
As a wood products company, Moelven delivers sawn goods, planed construction material and interior products, glulam, modular buildings and building solutions.
