The Chairman of the company, Division Manager Anders Lindh of Moelven Timber, says that even with extensive investment it will be difficult to achieve a future-oriented and profitable plant.
“Considering closing a company is never easy. Unfortunately, Moelven Norsälven currently has a very low technical status and requires extensive ongoing maintenance to keep up operations,” Lindh says.
Employee representatives have been formally asked to attend MBL negotiations pursuant to section 19. Negotiations have been initiated. 44 employees risk losing their jobs.
The company has annual revenues of just below SEK 200 million.
Major maintenance measures
Lindh says that attempts have been made to continue operations at Moelven Norsälven for as long as possible
“We now recognize that it is a question of time with regard to how long operations can continue in a proper manner without implementing improvement measures in the shape of major investments,” Lindh explains.
Positive so far this year
So far this year, results at the company have however been relatively positive.
“However, this must be viewed in the context of the economic situation for Swedish sawmills being the best in 10 years. Overall, the company has posted a loss in the five-year period from 2012 to 2016”, Lindh says.
Major investment needs
Lindh says that overall investment needs will total at least SEK 70 million in the next three years in order to provide hope for justifiable operations.
“We nevertheless believe that this will not result in sufficient long-term profitability.”
Focus on Karlskoga and Torsby
Two other large sawmills in Sweden – Moelven Valåsen AB and Moelven Notnäs AB – are in the midst of a development programme involving methodology, investments and organizational development.
“These two companies will have increased production capacity that can compensate for the reduction in production that an eventual closure of Moelven Norsälven will entail,” Lindh says.
According to Lindh, Moelven's overall production of sawn timber can be maintained at the same level, while efficiency and profitability is strengthened.
“Customers and suppliers will therefore not be affected by an eventual closure of Moelven Norsälven and restructuring of operations,” Lindh says.
For further information please contact:
Chairman Anders Lindh, mobile +4794833445