Laesti, owned by Bergs Timber, with two facilities in Pärnu, Estonia (Savi sawmill and Sauga sawmill), will cease all sawmilling and planing at Savi plant, leaving Savi site as drying center of Sauga production, the company said in the press release received by Lesprom Network.
At the Sauga plant, at the same time about SEK 10 million ($1.1 million) will be invested in new, capacity-increasing log intake and the production will increase to 95,000 cubic metres annual output production.
After the closure of Savi, Bergs Timber’s Estonian sawmilling capacity will reduce by 15,000 cubic metres. Savi has today about 70 employees out of about 20 will be offered to move to Sauga site and the total reduction will be about 50 employees.
“After the implementation our profitability in the sawmill business is improved while we are increasing the processing operations. Unfortunately, many employees are affected in Estonia and we will do our best to handle the situation in the best possible way,” says Peter Nilsson, CEO of Bergs Timber.
Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia. The Group also includes its own port and logistics operations in England.
