Holmen to invest SEK 170 million in capacity increase at Braviken Sawmill
Sweden-headed forest products major Holmen has decided to invest SEK 170 million (≈EUR 16.36 million) to increase the production of wood products at Braviken Sawmill. At the same time, a rail-based solution is being set up to transport raw material from Holmen's own forest in northern Sweden to the industrial facilities in Norrköping.
Located in close proximity to the Port of Norrköping, Braviken Sawmill was opened in 2011 and has since been expanded in several stages, most recently with the addition of a new wood treatment plant which was taken into use in spring 2018. The next step in the mill’s development is now being taken with an investment in dryers and a new trimming saw for sorting.
We are already in a strong position in the wood products market and we have constantly strengthened our range for builders’ merchants. It makes sense now to use a larger proportion of our saw capacity by increasing production by 150 000 m3. The fact that we are able to do this using logs from our own forest in northern Sweden and with only marginally higher staffing levels, was crucial in reaching this decision, said Johan Padel, Senior Vice President Wood Products.
The new dryers and trimming saw are expected to come into operation in 2020. After the investment, Holmen’s total production of wood products from its three sawmills – Braviken, Linghem, and Iggesund – will increase to just over one million m3. The raw material for the increase in production will come from Holmen’s own forest holdings in northern Sweden and will be transported by rail.
Holmen’s strength in being an industrial company with its own forest is becoming increasingly clear. Expanding capacity in Braviken and simultaneously establishing a climate-smart and cost-effective rail-based transport solution enables us to expand our operations while retaining good control of the raw material, commented Henrik Sjölund, Holmen’s President and CEO.
Braviken Sawmill is co-located with Braviken Paper Mill and by-products from the sawmill are used in the paper mill’s solid-fuel boilers. The sawmill purchases heat from the mill for its drying process, while surplus heat is used to heat production premises.