Södra and Norske Skog terminate wood purchasing partnership
Mar 06, 2009. A wood purchasing partnership between Södra and Norske Skog is to end after nine years. Södra decided to leave the purchasing partnership and establish its own organisation for wood procurement in Norway.
Mar 06, 2009. /Lesprom Network/. Södra and Norske Skog have been purchasing wood for their Norwegian mills through their jointly-owned company WoodLog (Wood and Logistics AS) since 2000, as Södra informed Lesprom Network. The partnership commenced when Södra acquired the Tofte and Folla pulp mills from Norske Skog.
Södra owns 28% of the shares in WoodLog and Norske Skog owns 72%.
However, owners’ wood requirements have changed in recent years with regard to issues such as imports, certification requirements and the need for different wood species. Södra has therefore decided to leave the purchasing partnership and establish its own organisation for wood procurement in Norway.
Norske Skog will take over Södra’s shares in WoodLog on December 31, 2009. Existing contracts between WoodLog and wood suppliers will be fulfilled even after Norske Skog has taken over the company.