Södra Wood will close down its production sites in Åtvidaberg and Ramkvilla, while the Klevshult site will be converted into a planing mill and sawmill operations there will be discontinued. Parts of Södra’s plant in Torsås will be closed down as well and the remainder will be put up for sale. The group estimates that 61 employees will be made redundant as a result of these changes.
Södra wants to make sure that the raw material is processed in the most profitable way possible in its production sites by constantly strengthening competitiveness. The company states that the major external changes, which took place in recent years, have had an impact on the market for wood raw material, while demand for lumber has decreased.
“We operate in a competitive industry where it is important to keep our eyes on the horizon and work with continuous improvement. This decision has been made to strengthen our position and to gradually build up an even more competitive operation. It is always difficult when a change affects employees and we will offer the best possible support to those affected throughout the process,” Marcus Åsgärde, President of the Södra Wood business area, said in a statement.
