Today 3rd October 2011, the new Södra Timber Värö facility has been inaugurated by Minister for Trade Ewa Björling. Through its subsidiary Södra Timber, the Södra forestry Group has invested SEK 1 billion in a new sawmill in Värö that has been relocated from Germany.

The new sawmill is one of the largest and most modern in Europe and represents an investment that will increase competitiveness in terms of both the market and raw material. The sawmill has created new job opportunities and will also generate employment in the forestry and transport sectors. The project involved replacing an existing sawmill in Värö, resulting in a threefold increase in production at Värö to 750,000 cubic metres.

Part of our future
Some 200 guests are invited to attend the inauguration ceremony, the theme of which is "A part of our future."  Ewa Björling will officiate at the inauguration. Together with Södra Timber's President Peter Nilsson, she will lay the final piece of a giant wooden puzzle depicting the sawmill. It symbolises the end of what was a complicated relocation project as well as an important piece of the puzzle moving forward. Following the ceremony, all guests will be invited to take part in a guided tour of the new sawmill.

Increased competitiveness
The aim of the project is to ensure that Södra's sawmill operations remain at the cutting edge, generating long-term profitability and the capacity to pay forest owners.

The investment reinforces Södra's clear ambition to become an international player in the sawmill industry. The market is also moving toward more standardised products, some of which require significant volumes to be competitive in the long term. Consequently, Södra needs a sawmill of this magnitude if it wants to vie for a place in the market of the future.

Short construction period
Project planning and construction took place over a relatively short period. The decision to construct the sawmill was taken in March 2010 and was realised through the acquisition of machinery and inventory from the German sawmill company Klausner Group's facility in Adelebsen, Germany. The sawmill had been in operation for just under a year at that point. It is a collaborative project in which Klausner is responsible for dismantling, relocating and constructing the facility as well as training personnel.

Most of the buildings are new and construction of the sawmill commenced in September of last year. On 19 May, the first log was put through the sorting line, with the first log being sawn on Midsummer Eve. Production at the old sawmill, which is now 40 years old, continued in parallel throughout the construction period. The plan is for the new sawmill to produce 750,000 cubic metres over three shifts. Production is focused on construction timber from pine and spruce.

Combined facility offers unique opportunities
A key part of the project is the location of the new sawmill adjacent to Södra's pulp mill; the combination effect with the pulp mill offers unique coordination opportunities between Södra Cell and Södra Timber. The combined facility generates cost advantages in terms of energy, wood chip transports and overheads.
The sawmill will receive its energy supply from the pulp mill and account for 30 per cent of the mill's wood chip requirements. Another benefit is the proximity to rail lines, the E6 European Highway and the harbour in Varberg. The sawmill will use about 1.5 million cubic metres of timber at full capacity, thus requiring a large harvesting area, from Skaraborg and Dalsland in the north of Sweden to Oskarström in the south. Due to the long distances involved, rail transportation of logs will be used where possible.

"The investment in Värö and the combined facility strengthens our competitiveness and capacity to pay for the raw material" comments Peter Nilsson, President Södra Timber.