Södra invests in Kinda for long-term competitiveness
In Sweden, forest owners' association and forest industry major Södra has announced that it, in line with its strategy to make more of every tree and to strengthen the long-term competitiveness of family forestry, has decided to invest over a billion SEK (over EUR 89 million) in its Kinda sawmill operations including capacity increases and a new pellet plant.
Södra’s mission is to refine and renew the values of forest estates. A competitive industry is key to utilizing the raw materials from family forestry in the best possible way and creating valuable products for customers and consumers.
Sawn timber is a sustainable building material and plays a central role in Södra’s product offering.
Therefore, Södra has decided to invest more than a billion SEK (over EUR 89 million) in the sawmill in Kinda—one of the largest investments ever made in Södra’s sawmill operations.
This investment is crucial for the future of the sawmill and will contribute significantly to the growing demand for timber in construction and the green transition.
This is a forward-looking investment for Södra, where we continue to make more of every tree and strengthen our position in a location close to both raw materials and the market. Södra is stronger with Kinda than without, and the alternative would have been to close the sawmill. Instead, we choose to invest in our long-term competitiveness, commented Lotta Lyrå, CEO of Södra.
Staged investment
The investment strengthens Södra’s position as a long-term and reliable supplier of timber products both in Sweden and globally.
The sawmill’s location in a growing region provides opportunities to increase market share and ensure a strong local presence.
The implementation is expected to take place in stages and be fully operational by 2028.
Increased capacity and new pellet plant
Once completed, the facility’s capacity will increase by 50 percent, reaching an annual volume of 300,000 m3 of sawn timber.
In addition, the investment includes a new pellet mill with an annual production capacity of 25,000 tonnes.
It’s a bold decision by Södra to invest in Kinda. We are adding value and capacity, which strengthens our competitiveness and creates new opportunities going forward. This is an investment in the industry, in the potential of timber construction, and in meeting our customers’ long-term needs worldwide. At the same time, it’s an investment in the local community and our employees, enabling the development and continued operation of the Kinda sawmill, said Marcus Åsgärde, Head of Södra Wood Business Area.
The investment secures the future of the sawmill in Kinda. It also opens opportunities for further expansion and new business opportunities for Södra, such as a new pellet mill and potential future production of biocarbon.
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