Norra Skog to invest SEK300M in its Kage sawmill, north of Skelleftea in Sweden; investment will focus on value-added products, traceability, facilities, logistics, and will contribute to long-term sustainability for forest and human population

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UMEA, Sweden , September 22, 2022 (press release) –

Every year, Norra Skog's Board of Directors makes policy decisions for the next five years of industrial investments. This gives the board an opportunity to clearly point out the direction of the association's industrial activities and have the right foresight. The decisions usually involve both large amounts of investment and projects that are extensive and technically complicated, which means that they need to be prepared carefully. A large part of the coming years' investment will take place in the association's sawmill in Kåge, north of Skellefteå.

Text: Ulrica Winberg-Jonsson | Photo: Henrik Jönsson

Date: 2022-09-20

"Norra Skogs industri continues to develop all the time and in Kåge the Board has decided to invest just over SEK 300 million in the sawmill. The investment can be divided into four parts; Higher value exchange, traceability, staff facilities and new logistics. The total investment will contribute to creating long-term sustainability for both the forest and the human population," explains Industrial Manager Henrik Jönsson.

Higher value yield
The higher value range is created through the construction of a new timber sorting, the purchase of a new split saw and the installation of a CT log. It will create a unique opportunity to follow the saw's production to constantly create better efficiency. To prepare for the upcoming investments and the development of Kåge sawmill, new warehouses are already being built, which will provide capacity for more timber to be stored under a roof. A positive effect of this is that less plastic is needed when the wood raw material is moved between sawmill and further processing to become construction products.

-We work with the renewable raw material forest and it is important that we optimize, i.e. ensure that every small part of the log is utilized in the best way. With the help of this investment, we expect to increase our value yield by three to four percent," explains Joakim Larsson, Sawmill Manager norra Timber in Kåge.

Future technological leap in traceability
The investment also means a paradigm shift in sawmill technology. The technology installed will make it possible to read the individual fingerprints of the log. After the investment, each individual log will be possible to follow and document throughout the sawing process.

"We are now taking a technological leap into the future and a big step in taking care of our fantastic northern raw material in the best possible way. With the new technology, we will be able to price the products from each log individually, which leads to better profitability for both us and our customers, explains Joakim Larsson.

"In order for the industry to be of benefit to Norra Skog's members, it is important that it is competitive and profitable. Today, Norra Skog has an efficient and profitable industry that contributes with member benefits, largely thanks to the way of working that gives the Board the opportunity to make wise decisions for our industry many years in advance, concludes Henrik Jönsson.

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