Dec 01, 2011. /Lesprom Network/. The Board of Gällö Timber has decided to initiate negotiations with the trade unions regarding a closure of the sawmill Tjärnviks Trä. The reason for the decision is insufficient raw material supply and as a consequence poor profitability. 43 employees at Tjärnviks Trä will be redundant, as the company said in a press release received by Lesprom Network. Tjärnviks Trä in Gnarp in Mid Sweden is part of Gällö Timber AB, together with Gällö sawmill. Tjärnviks Trä has a production capacity exceeding 100,000 cubic metres of wood products of spruce and pine. The last years the actual production has been lower, due to short raw material supply. “We have not been able to procure the raw material we need for a profitable business,” says Tommy Högberg, President of Gällö Timber. “Along with a weak market for wood products and poor profitability, we see no possibilities to continue operations.” Gällö Timber is now starting negotiations with the trade unions regarding a closure of the sawmill during 2012.