Södra Timber, part of the Södra forestry group, is undertaking rationalisation and efficiency measures at its Kinda and Åtvidaberg sawmills. By coordinating the sawmills the company plans to increase its focus on Swedish builders merchants.
The Kinda and Åtvidaberg sawmills have a similar market concept and predominantly target the Scandinavian market. Spruce only is sawn at Kinda and pine at Åtvidaberg.
“The product and market concept of the two mills has become increasingly similar. As a result we now see major benefits in coordinating the range and the organisation. The change is being made to reduce costs, as well as to strengthen the market concept in Scandinavia and improve our service to customers,” says Peter Nilsson, president of Södra Timber.
At the same time, the significant weakening in the market further increases the need to reduce costs. This will result in a personnel reduction of some 25 employees, of which 20 are at Kinda. Trade union negotiations are starting immediately.
“As part of the change process, the two sawmills will have joint management with the current manager of Kinda, Dan Forslund, running both units. Magnus Fransson, the current manager of Åtvidaberg, will be production manager and Magnus Linquist will be product manager for the two sawmills,” says Peter Nilsson.
The reorganisation is taking place gradually and is to be fully implemented by mid-year 2009.
Sawmill production is to remain at its present level following the reorganisation, but the products will have a higher refinement level.
“Following the reorganisation, Kinda/Åtvidaberg will be a competitive unit ready for further growth on the Scandinavian market,” says Peter Nilsson.