Rörvik Timber invests SEK 90 million to expand Linghem sawmill capacity

Source:
atl.nu/Fordaq
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Rörvik Timber invests SEK 90 million (EUR 9,5 million) in developing Linghem sawmill outside Linköping, Sweden. The investment will be carried out in several stages, the first stage of the investment projects contemplates a new production line for small logs and other machinery for drying capacity expansion.

Once implemented, the investment project will allow to produce about 130,000 cubic meters of the end product in two shifts at this site. After completion of the first stage of the investment project, production will come up to approximately 80 000 cubic meters in a ten-hour shift. Procurement of equipment and machines begin immediately. The new line is expected to be operational in early 2016, says atl.nu.

As reported earlier, Rörvik Timber planned to expand sawn timber production volume by means of increasing its raw material purchases in Sweden and through imports. The company wants to expand production to about 800,000 cubic meters, which corresponds to an 84% capacity usage ratio.

Besides, Rörvik Timber's management has made it clear that the raw materials in southern Sweden are too expensive. That's why the company wants to increase imports from Norway and Russia. However, Rörvik Timber wants to increase its raw material stocks not only by means of imports, but through domestic procurement as well. 

''We increase both imports, mainly from Russia, and purchases in the immediate proximity to the sawmill'', says Per Rodert, Rörvik Timber's CEO.

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