Broakulla sawmill to cut 35 jobs

Broakulla sawmill, part of Swedish Bergs Timber, plans to cut 35 jobs, Norvik Timber Industries announced. According to the statement, with the sale of Jarl Timber to Bergs Timber, the Broakulla sawmill will specialize in small logs and it will complement Bergs Timber group’s other sawmills’ specifications. As part of Bergs Timber, the Broakulla sawmill, like all sawmills in the Bergs Timber group, will be very specialised in order to be efficient. Remaining as an independent sawmill in the competitive South Swedish environment is not an alternative for Jarl Timber.

'As a result, redundancies are inevitable with the specialization of the Broakulla sawmill. It is unfortunate that the redundancies and cost cutting must take place, but these are necessary for the saw mill to continue its operation', says
Sampsa Auvinen, interim Managing Director of Jarl Timber and CEO of Norvik Timber Industries.

Therefore, the Board of Directors of Jarl Timber has given the management the instruction to start negotiations with the unions. The number of people that will be affected by the redundancy process is expected to be about 35. Bergs Timber has called in an AGM for the 28th of June to let the shareholders decide on the acquisition of Jarl Timber.

Lesprom Network has reported that Bergs Timber AB signed a letter of intent regarding the acquisition of all shares in Jarl Timber AB  from Norvik Hf. Norvik is a large privately owned Icelandic Group among others active in the building materials, sawmill / processing and real estate. Operations are conducted in several countries.

Jarl Timber conducts sawmill operations in Broakulla, Sweden. Bergs Timber's plants are located in Gransjö, Orrefors and Nybro.