Bergs Timber restructures the Swedish sawmill business
A strategic review of the Swedish sawmill business has been carried out during the winter in order to create opportunities for long term profitability. The plan clearly indicates the potential to concentrate efforts in development and investments to three of the today’s four sawmills.
The purchase price amounts to SEK 390 million and the transaction is now completed in accordance with previously communicated terms after approval has been obtained from the Swedish Competition Authority.
In connection with the transaction, Jan Liljegren is leaving the Group Management in Bergs to take up a position at Vida. Group management then consists of Peter Nilsson, President and CEO, and Anders Marklund, In light of this plan, the Board of Directors of Bergs Timber has decided to immediately initiate discussion with the unions to close Gransjö sawmill. The sawmilling business will cease as soon as possible and the remaining business during the autumn 2020. The closure will affect about 45 employees.
”We do not see it financially realistic to continue to develop our four sawmills and will therefore concentrate our resources and investments to the sawmills in Vimmerby, Mörlunda and Orrefors. This will strengthen the opportunities for long term profitability in the Swedish sawmill business. Unfortunately it means that 45 of our employees have to leave the company” says Peter Nilsson, CEO of Bergs Timber.
The closure of Gransjö sawmill will affect the result for the first quarter 2020 with about SEK 30 million related to impairment of fixed assets and costs for the closure. The closure will have a positive effect on cash flow with about SEK 60 million when the closure has been concluded.
Further information about this press release can be provided by Bergs Timber’s CEO and group president Peter Nilsson,+46 703 15 09 27 or CFO Anders Marklund, +46 702 84 47 96.
The information is such that Bergs Timber AB (publ) is required to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, on 30 March 2020 at 14.05 (CEST).
Bergs Timber AB (publ), 556052-2798, Stora Torget 3, SE-598 37 Vimmerby, telephone +46 10 19 98 500. More information about our operations can be found on our web page under the address www.bergstimber.comCFO. Furthermore, the employee representatives on the board will leave when they transfer to employment at Vida.
Contact
Further information about this press release can be provided by Bergs Timber’s President and CEO Peter Nilsson, +46 070-315 09 27.
ABOUT BERGS
With wood as a raw material, Bergs produces processed wood products from sustainably managed forests in the Baltic Sea region. With years of experience in wood and a great deal of competence in processing, we promote building a sustainable society with renewable materials.
Our operations – conducted through wholly owned subsidiaries in Sweden, Estonia, Latvia and the UK – encompass sawmills and processing as well as distribution and logistics.
The Group has sales of approximately SEK 2 billion and around 850 employees. Bergs is listed on Nasdaq Stockholm, and its head office is in Vimmerby, Sweden.
