In Sweden, forest industry major Svenska Cellulosa Aktiebolaget (SCA) has announced that it plans to gain full ownership of compatriot Gällö Timber AB by acquiring AB Persson Invest's 50 percent share in company. To be completed in 2024, the move will strengthen SCA's position as one of Sweden's leading producers of sawn timber.
SCA and Persson Invest began their collaboration around Gällö Timber and the sawmill in Gällö, Jämtland in 2010. Since then, significant investments have been made in the sawmill to develop its operations and strengthen its competitiveness.
Today, the sawmill has 115 employees and an annual production capacity of 370 000 m3 of sawn wood.
SCA is Europe’s largest private forest owner with 2.7 million hectares (ha) and, with its forest holdings at its core, has developed a well-invested industrial operation with sawmills, pulp mills, and manufacturing of packaging paper.
By acquiring Persson Invest’s share in Gällö Timber, SCA strengthens its position as one of Sweden’s leading producers of sawn wood.
By acquiring the remaining part of Gällö Timber AB, we further strengthen SCA’s sawmill operation and continue the strong collaboration we have with Persson Invest. Through the investments we’ve made in Gällö together with Persson Invest, we have enhanced the operation’s competitiveness and secured local jobs, said Ulf Larsson, CEO of SCA.
Persson Invest is a family-owned conglomerate based in Östersund. The group has a turnover of about SEK 8 billion (≈ EUR 673.4 million) and employs around 1 350 people.
The company has six business areas where the sale of cars, trucks, and buses are the two largest in terms of turnover and number of employees.
Persson Invest owns approximately 140 000 ha of forest and operates timber processing in the company Valbo Trä AB, with three facilities that together have a turnover of about SEK 1 billion (≈ EUR 84.16 million)
SCA and Persson Invest will continue to collaborate after the transaction, including by delivering sawn wood to Persson Invest’s operations and purchasing raw forest materials from Persson Invest’s forest holdings.
The collaboration around Gällö Timber has been and continues to be fruitful. Together with SCA, we have developed an almost 150-year-old sawmill business into one of the most competitive in Sweden. We look forward to continuing our collaboration as a customer and supplier for a long time to come, said Bob Persson, Chairman of Persson Invest.
