Dec 14, 2009. /Lesprom Network/. The Södra Board decided to back plans for a completely new sawmill at Södra Timber Värö, the company said in a press release received by Lesprom Network. Södra Timber Värö currently produces 275,000 cubic metres annually. The new sawmill would give the mill an annual capacity of 750,000 cubic metres. “We have evaluated a number of investment alternatives and will now start the process of developing a final proposal. All alternatives involve investment in a completely new plant which would enable production in the current mill to continue during construction,” says Peter Nilsson, president of Södra Timber. “Investing in a brand new saw line rather than investing in the old one gives us the opportunity to make a substantial technology leap,” says Södra Chairman, Lars-Eric Åström. “The big challenge, apart from constructing a whole new sawmill, will be raw material acquisition. But with the greater paying capacity the new line will bring I consider this project to be most positive,” he continues. “We believe there will be a positive development for timber products and this investment provides us with a top modern, highly-productive plant. This will increase our competitiveness at the same time as we increase our paying capability for saw logs,” says Södra President and CEO Leif Brodén. The application process for a new production licence will be started immediately. “We will apply for a licence for annual capacity of one million cubic metres. It is a large and complex project, for which we will now start final planning. Our objective is to be ready to make a final decision before summer 2010,” says Peter Nilsson.