Holmen is investing SEK 400 million ($44.4 million) to increase value added and capacity at Iggesund Sawmill in Sweden. This will increase the production at Iggesund Sawmill by 20% as well as adding construction timber on top of its joinery products range.
“Following the acquisition of Martinsons and the expansion of Braviken, the investment in Iggesund Sawmill is the next step in strengthening our position in wood products,” says Henrik Sjölund, Holmen’s President and CEO.
The investment will enable the sawmill to switch from lower grade joinery spruce to construction timber in both spruce and pine. This will increase the value added and improve the market mix by increasing the share sold to Scandinavian builders’ merchants.
“Wood as a construction material is benefiting from the ongoing transition to a fossil-free world, especially if concrete and steel will carry their true climate cost. We continue to focus on adding value to the forest we own and are already part of the solution to the climate issue. Our strategic position is right on point financially and in terms of the climate,” comments Henrik Sjölund, Holmen’s President and CEO.
The investment in log sorting and a new planing facility will remove bottlenecks and is expected to increase the sawmill’s capacity to just over 450 000 m3. Start-up is planned for autumn 2023, with full capacity expected to be reached towards the end of 2024.
Holmen is one of the biggest forest owners in Sweden and the growing forest is the basis of its business.
