Södra has decided to invest more than a billion SEK in its sawmill in Kisa, southern Östergötland, in line with its strategy to make more of every tree and to strengthen the long-term competitiveness of family forestry. The company says this investment is crucial for the future of the sawmill and will contribute significantly to the growing need for timber construction in the green transition.
Södra’s mission is to refine and renew the values of forest estates. Sawn timber is a sustainable building material and plays a central role in Södra’s product offering. Therefore, Södra has decided to invest more than a billion SEK in the sawmill in Kinda – one of the largest investments ever made in Södra’s sawmill operations.
Lotta Lyrå, CEO of Södra, said: “This is a forward-looking investment for Södra, where we continue to make more of every tree and strengthen our position in a location close to both raw materials and the market. Södra is stronger with Kinda than without, and the alternative would have been to close the sawmill. Instead, we choose to invest in our long-term competitiveness.”
The investment strengthens Södra’s position as a long-term and reliable supplier of timber products both in Sweden and globally. The sawmill’s location in a growing region provides opportunities to increase market share and ensure a strong local presence. The implementation is expected to take place in stages and be fully operational by 2028. Once completed, the facility’s capacity will increase by 50%, reaching an annual volume of 300,000 cubic meters of sawn timber. In addition, the investment includes a new pellet mill with a capacity of 25,000 tons of pellets.
Marcus Åsgärde, Head of Södra Wood Business Area, said: “It’s a bold decision by Södra to invest in Kinda. We are adding value and capacity, which strengthens our competitiveness and creates new opportunities going forward. This is an investment in the industry, in the potential of timber construction, and in meeting our customers’ long-term needs worldwide. At the same time, it’s an investment in the local community and our employees, enabling the development and continued operation of the Kinda sawmill.”
The investment secures the future of the sawmill in Kinda and also opens opportunities for further expansion and new business opportunities for Södra, such as a new pellet mill and potential future production of biocarbon.
