02-12-2013 kl. 16:53
Bergs Timber has announced it is to invest in a new production line at its sawmill in Morlunda, Sweden, focusing on small logs.
Following the development, sawmill production at the plant will increase by 40,000 cubic metres to 110,000 cubic metres of sawn timber.
This would see the mill operate a two-shift strategy, without the need to expand staffing at Morlunda, the company stated.
The new line is expected to become operational in spring 2014 and the existing line of small diameter logs will be deconstructed in order to facilitate the expansion.
While the total cost of the investment is expected to reach SEK 27 million (£2.52 million), Bergs Timber has received an increase in its bank credit of SEK 10 million to cover the expense.
The company, based in Sweden, closed its normal-sized timber line at Morlunda in June and currently produces a wide range of wood products, the majority of which are exported internationally.
HD FestForest provides forest management in Estonia, Latvia and Lithuania and is a subsidiary company of HedeDanmark.