After a strategic review of the operations in Bitus AB, a subsidiary of Bergs, the Board of Directors has concluded that future efforts and investments for increased competitiveness and not least in energy efficiency should be concentrated to the existing facilities in Nybro and Fågelfors, Sweden. The advantages of production on fewer units are obvious. This means that production in Broakulla, in Emmaboda municipality, will be discontinued and 12 employees will be affected.
Negotiations have been initiated with those concerned and the ambition is for the closure to be completed by the beginning of 2023.
"We do not see it realistic to operate the unit in Broakulla with profitability. From that perspective, the logic behind this change is very clear, but at the same time very sad as it will affect several of our competent employees," says Peter Nilsson, President and CEO of Bergs.
The costs related to the closure will only have a marginal impact on the Group's results. The cash flow will be positively affected by reduction of working capital.
The subsidiary Bitus is part of Bergs’s Wood Protection product area and is one of Europe's leading producers of impregnated wood products for both the Swedish market and various export markets. In Fågelfors there is also a modern production plant that produces energy pellets, stable pellets and heating logs under its own brand.
