Södra is implementing structural changes in its hardwood sawmills to strengthen the long-term competitiveness of its sawmill operations. Negotiations with trade unions will be initiated with the intention of closing the hardwood sawmill in Djursdala, Sweden, with its 15 employees.
Södra acquired the hardwood sawmill in Djursdala in 2009 and it is one of Södra’s smallest sawmills with annual production of 15,000 cubic metres of oak and birch timber.
“We have not achieved profitability despite extensive efforts. A long-term profitable sawmill operation is an essential part of the assignment from the owners to create profitability for forest estates. Against this background, we have now decided to initiate negotiations regarding an immediate closure of the sawmill,” said Jörgen Lindquist, Business Area President.
With the closure of Djursdala, Södra will no longer have any hardwood sawing operations. Södra will seek other alternatives to find markets for its members’ hardwood products.
“We will redirect volumes to external customers and thus find markets for our members’ hardwood products at market-based prices, enabling us to maintain a high level of ambition in our hardwood forest management activities,” said Håkan Larsson, President of the Södra Skog business area.
