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Derome Timber investing SEK 400m in sawmill capacity expansion

Sweden's largest family-held integrated solid wood processing group, Derome AB has announced that its wholly-owned subsidiary Derome Timber AB is investing SEK 400 million (≈ EUR 39.55 million) in rebuilding its Derome sawmill to double sawn wood production capacity to 550 000 m3 per annum.

Derome Timber AB, a wholly-owned subsidiary of Sweden’s largest family-held integrated solid wood processing group Derome AB, is investing SEK 400 million (≈ EUR 39.55 million) in rebuilding its Derome sawmill to double sawn wood production capacity to 550 000 m3 per annum (photo courtesy Derome).

According to a statement, bullish domestic and international wood product markets with customer demand expected to continue growing lie behind the investment decision.

This investment means that we are expanding the capacity at our sawmill in Derome and that we can meet increased demand from our customers. The investment is just in time. Society must switch to more climate-smart solutions and renewable wood is good for the climate. Therefore, it feels good that many people want to live in homes built of wood, more and more people believe in wood as the material of the future, said Per Andersson, Development Manager at Derome Timber AB.

Contracts with technology and machinery suppliers have been signed, and work is currently underway on a new dryer. The rebuilding and expansion of the log intake, sawline, and raw sorting will start in 2022 and is expected to be completed in 2024.

We will continue to develop our production so that further processing is as efficient as possible and that each tree is fully utilized and becomes wood. It feels fantastic that we have reached an agreement with the suppliers and that the work of expanding our facility in Derome can begin, said Per Andersson.

A spruce-only mill, the reconstruction at Derome will lead to an increase in production in two phases, first to 450 000 m3 and in the next phase to 550 000 m3.

Derome Timber currently operates four sawmills with a combined total annual production capacity of 600 000 m3 sawn wood, planing capacity is 600 000 m3/year, pressure-treatment capacity is 280 000 m3/year, and wood pellets around 70 000 tonnes/year.

Part of Derome Group, Derome Timber supplies both the Group’s builder’s merchant chain, roof truss manufacturing, timber-framed housing, and pallet and packaging subsidiaries as well as supplies domestic and international third parties.

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