Jarl Timber has recently announced that the Broakulla sawmill will specialize in small logs, following the announcement made on the sale of Jarl Timber to Bergs Timber.
The sawmill produces over 120,000 m2 of sawn timber and nearly 80% of this is spruce from local forests located in 150km radius of Broakulla.
As part of Bergs Timber, the Broakulla sawmill, like all sawmills in the Bergs Timber group, will be very specialised in order to be efficient. Remaining as an independent sawmill in the competitive South Swedish environment is not an alternative for Jarl Timber.
As a result, redundancies are inevitable with the specialization of the Broakulla sawmill. It is unfortunate that the redundancies and cost cutting must take place, but these are necessary for the sawmill to continue its operation, says Sampsa Auvinen, interim Managing Director of Jarl Timber and CEO of Norvik Timber Industries.
Therefore, the Board of Directors of Jarl Timber has given the management the instruction to start negotiations with the unions. The number of people that will be affected by the redundancy process is expected to be about 35.
Bergs Timber has called in an AGM for the 28th of June to let the shareholders decide on the acquisition of Jarl Timber.
