Södra is acquiring Bergvik Skog AB’s forest holding in Latvia. The total area is 111,100 hectares, of which 80,300 comprise forest land, as the company says in the press release received by Lesprom Network.
“This investment will secure some of our need for forest raw material. It will improve the structure of our wood imports by complementing our members’ wood deliveries and strengthening Södra’s competitiveness,” said Lars Idermark, President and CEO of Södra.
Södra already owns 15,000 hectares of forest land in Latvia, and this acquisition will substantially strengthen the company’s position.
The acquisition comprises all shares in two companies, SIA Bergvik Skog and SIA Ruda, and includes the forestry organisation with 24 employees.
The forest soil is highly fertile and growth will increase over the coming decades. The growing stock volume is currently 10.6 million cubic metres. The purchase consideration is Euro 324 million.