Södra is implementing structural changes in its sawmill and planing operations to strengthen the company’s long-term competitiveness. Investments are being planned for the sawmills in Långasjö, Värö and Orrefors in Sweden, as the company said in the press release received by Lesprom Network.
The largest investment will be made in Långasjö, where the production volume will increase from 280,000 to 360,000 cubic metres.
At the same time, a decision has been made to initiate trade union negotiations due to closures of the sawmills at Ramkvilla and Torsås, and production cuts at Mönsterås and Värö. Overall, annual production capacity will be reduced by approximately 200,000 cubic metres.
In total, approximately 150 employees will be affected by the restructuring, but new opportunities will also open at the facilities that are increasing their capacity.
The increased output will create a need for approximately 50 positions, mainly in Långasjö and Trivselhus. Södra’s smallest sawmill, Djursdala, which processes hardwood, is currently undergoing divestment.
“Unfortunately, many employees will have to leave Södra, and we are doing everything we can to act responsibly and offer career transition and relocation support. But on behalf of our owners, it is our job is to ensure a solid base for the future and make Södra Wood profitable in order to promote the profitability of their forest estates,” says Jörgen Lindquist, President of the Södra Wood business area.