Wood products company Moelven to close operations in Norway
Topics: WOOD MOELVEN NORWAY
The board of directors of Moelven Industrier decided on this measure, which affects 60 employees, on 30 September.
According to Moelven, significant investments are required if the facilities are to operate at a profitable level on balanced lumber markets.
The group has set aside provisions to the amount of NOK17.0m in order to finance the closure.
The band saw equipped with an edger is designed for production of 90,000m³ spruce lumber/annum.
Approximately two thirds of this volume is further processed at the adjacent industrial planing mill.
The majority of the planed lumber is sold on the domestic market in Norway.
In September Moelven also decided to reduce cutting activity at the Norwegian sawmill Moelven Løten from 90,000m³ to 70,000m³ pine roundwood.
As from the beginning of next year Moelven Løten, the smallest sawmill location within the group, is to produce only speciality products made from long pine sawlogs, also on a band saw line equipped with an edger.
Production of standard products will be transferred to the Moelven Våler sawmill, which is located 35km away.
The pellet plant and heating station, which operates under the name Moelven Pellets started pilot operation at the end of September.
Production at the pellet plant, designed for a capacity of 80,000t/annum, is to commence according to schedule.
The entire pellet production will be taken over by Svenska Celulosa Aktiebolaget (SCA).
The existing heating station on the premises of the Moelven Soknabruket sawmill was closed down recently.
Reconstruction of the dry kilns damaged in a fire at the Moelven Trysil sawmill in February is progressing according to schedule.
The new dry kilns are expected to be completed during the course of the fourth quarter. ■