The Board of Moelven Norsälven AB has decided to close down the sawmill. This is because investment needs in the plant are extensive and will not result in the necessary profitability, as the company says in the press release received by Lesprom Network.
The
Chairman of the company, Managing Director Anders Lindh of the Moelven division
Timber, says that even with significant investments, it is not possible to
achieve a forward-looking and profitable plant.
“It is with a heavy heart we close down a business, and it’s a difficult time
for the employees at the company. Unfortunately, Moelven Norsälven currently
has a very low technical status and requires extensive ongoing maintenance to
keep up operations. It is only a matter of time before operations become
untenable,” Lindh says.
Lind says
that Moelven currently doesn’t recognize opportunities to prioritize funds for
extensive investments with such uncertain returns.
“In recent years investment funds in Moelven have been limited, and are
therefore directed at those companies and projects with the best assumptions to
create profitability. The discontinuation of Moelven Norsälven is a part of an
overall assessment. It is a structural decision in order to create better
profitability for the Moelven group as a whole,” Lindh says.
A meeting
has been held with the staff to inform them of the decision to close the plant.
“In the next few days negotiations will be held with the employees' unions with
regard to implementation of the redundancies,” says Chairman of the Board
Anders Lindh.
A plan will now be prepared for winding down activity in the company. It is assumed that this will be more or less completed in the 1Q 2018.
