Displaying items by tag: södra timber
Södra Timber Värö invests in drying capacity
Södra Timber has procured three progressive kilns for the sawmill in Värö to meet the needs of the planned increase in production. Installation will start immediately and production is expected to start by September 2013.
Södra Timber Värö is planning to introduce a three-shift pattern in September 2013, involving a capacity of 600,000 cubic metres.
"We are seeing an increase in the demand for Södra Timber products from Asia, as well as the USA and a number of countries in Northern Europe. This is why we are planning to introduce a third shift in the autumn. Production will be 80 per cent spruce and 20 per cent pine, which is optimal for the catchment area of the Värö sawmill," said Håkan Svensson, Acting President of Södra Timber.
This increase in production will require additional drying capacity.
"The decision was made to invest in progressive kilns from Valutec, as their operating costs are low. These are fitted with heat recovery and require no staffing. These progressive kilns are also particularly well suited to drying side boards containing a lot of water. This means that they will provide a good complement to the existing chamber kilns, which are more suited to centre cut volume," added Svensson.
The sawmill is currently being fine-tuned so that it can achieve the planned production rate by next autumn.
Södra Timber imposes market shutdown
Price levels for sawn timber products have been increasing slowly during the second quarter of 2012. At the same time, however, the construction market remains weak almost everywhere for Södra's products, not least in the Netherlands and Denmark, which are important to Southern Sweden. No improvement is expected until 2013 at the earliest.
Profitability remains weak as a consequence of depressed demand and overcapacity of timber construction products in Southern Sweden.
As a result, Södra Timber is reducing its production. The planned holiday downtime at its sawmills in Ramkvilla and Torsås will be extended as an initial measure. Sawmill production will stop on 4 June and resume on 27 August, extending the planned holiday shutdown by two months. Sawmill production at the sawmill in Långasjö will be reduced from a three-shift pattern to a two-shift pattern over the same period. All sawmills will remain open for deliveries throughout the summer.
The situation at Södra Timber's sawmills will be evaluated in May.
"We are monitoring market development closely. The sawmills have now seen a fairly long period of no profitability, and we have to create a balance between production and demand in order to place ourselves back in a reasonable situation," said Peter Nilsson, President of Södra Timber.
"We hope that these measures will improve the situation. But at the same time, we are not ruling out further action in the future," Nilsson added.
Södra reduces price of softwood pulp timber
The 16th of January Södra reduced the price of its softwood pulp timber by SEK 25 per m3sub. This price reduction is also applicable to the pulp timber element of its storm range. The price of all hardwood pulp timber ranges will remain unchanged for the time being, however.
A contract adjustment concerning small sawn timber and hardwood and softwood pulp timber will be taking place at the same time. As of 1 February, customers will be given the opportunity to use the applicable price for these ranges at the time of contracting.
"This adjustment will make it easier and clearer for forest owners to work out what price they will receive for their timber, and it will give us better sale options than before, and that is why this change is logical," concluded Håkan Svensson.
The new softwood pulp timber price is SEK 300 per m3sub, while the price of hardwood pulp timber will remain at SEK 350 per m3sub.
Södra Timber acquires Romerike Trelast
Södra Timber has acquired all shares in Romerike Trelast, located outside Oslo. The company will operate independently, but will be renamed Södra Timber AS.
Romerike Trelast comprises a sawmill with an annual production of 60,000 cubic metres of sawn timber, a planing mill and a pressure treatment plant. Romerike is situated 40 kilometres north of Oslo, close to Gardermoen Airport, and is currently owned by Romeriks Almenningene and Viken Skog.
Romerike was relocated to its current site in 1995 in connection with the construction of Gardermoen Airport. Romerike has approximately 35 employees and annual sales of about NOK 110 million.
Södra already has operations in Norway, including two pulp mills, a forestry organisation, Södra Interiör and house sales through Trivselhus. The acquisition of Romerike will provide Södra with a platform for sawn and planed timber.
"The acquisition is a logical step to achieve a cohesive forest-industrial structure in Norway. We have a long-term ambition for the acquisition and it strengthens our presence in one of the world's best timber market," says Leif Brodén, Södra's CEO.
Södra Interiör AS will manage and coordinate sales and logistics using its existing sales organisation. The aim is to further develop Romerike into a centre for Södra Timber and Södra Interiör in Norway.
"With this acquisition, we can offer a complete timber range with everything from construction timber to mouldings and flooring. By coordinating sales and logistics with Södra Interiör, we can offer a comprehensive service concept to our building-materials and industrial customers in Norway," says Peter Nilsson, President of Södra Timber.
The transaction is pending final approval by the Norwegian competition authority, which is expected to take between three and five weeks.