Bergs Timber to cease lumber production at Broakalla mill in Sweden

28 February 2019

Bergs Timber to cease lumber production at Broakalla mill in Sweden. Broakulla has an annual production of about 50,000 cubic metres of sawn goods and the Group's facilities in Gransjo and Morlunda will, after the closure, increase production with the corresponding volume. The sawmilling in Broakulla will provisionally cease before the summer and the plant will then be developed into further processing and logistics. For this purpose SEK 3 million ($322,580) will be invested in the autumn, as the company says in the press release received by Lesprom Network.

The unit will be a part of Bitus, the Group's Swedish part of its new business area Further Processing, focusing on processing and wood protection. Broakulla currently has about 20 employees and all will be offered employment at the new processing operations or at any of Bergs Timbers facilities in Gransjö, Orrefors or Nybro. MBL negotiations begin immediately.

Bergs Timber produces and sells sawn and further processed wood products. It operates its production facilities in Sweden, Estonia and Latvia. The Group also includes its own port and logistics operations in England.