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Södra invests SEK 25 million in Kallinge

Posted by on Sep 14, 2017 in wood construction, wood market |
Södra invests SEK 25 million in Kallinge

Södra is strengthening the long-term competitiveness of its planing operations and intends to co-locate the units in Ronneby and Kallinge. The new proposed location will be in Kallinge, where SEK 25 million is to be invested in upgrading to a paint system that is more environmentally sustainable, in new machinery and in improvements to the logistics centre. These measures will lead to efficiency enhancements and trade union negotiations in accordance with the Co-Determination in the Workplace Act (MBL) will start immediately.

Market conditions have changed considerably for interior wood products in recent years. Södra has implemented many adjustments to the production structure in response to the changes in conditions. The next step is now being taken by co-locating units in Kallinge and Ronneby to achieve synergies.

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Peter Karlsson, segment manager for Interior Wood, said:

“We are now planning to invest in line-based production in Kallinge to strengthen competitiveness and are moving the warehouse in Ronneby to Kallinge in autumn/winter 2017, which will also improve the work environment. We will then move production in summer 2018 and cease production and logistics in Ronneby. Processes in marketing, logistics, order handling and general administration will also be streamlined. There is strong demand for interior wood products, with growth in the building materials trade of more than 4 percent for the first six months of 2017. The proposed changes will improve conditions to establish competitive interior wood operations.”

Slightly more than 55 employees of the total 142 employees in Ronneby and Kallinge will be affected by the restructuring. MBL negotiations will begin immediately. Kallinge and Ronneby have joint priority rules for the order of termination and the two facilities are only three kilometres apart, which makes commuting to a new unit easier.

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Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 50,000 forest owners. Södra is also an international forest industry Group, with 3,600 employees. A balance between production efficiency and nature conservation guides everything that we do. We produce timber, interior wood products, paper and textile pulp, and green energy. We use every part of the tree, and are always looking to develop new products from this fantastic, renewable raw material. Södra is one of the leading European suppliers of pulp for the global market, and has one of the largest sawmill operations in Sweden. Through value-generating relationships and a long-term approach, Södra is leading the way for the next generation of forestry.