Södra to acquire TUJO sawmill and timber treatment facilities
Södra, the Swedish forest owners association, has announced that it is to acquire compatriot sawmill Ture Johanssons Trävaru AB and timber treatment company AB Tenhults Impregneringsverk. The "TUJO" acquisitions will take effect pending approval by the Swedish Competition Authority, a process that is expected to take up to six weeks.
According to Södra, the new sawmill and timber treatment facility acquisitions will provide a “better market for wood in a prioritized area” and strengthen Södra’s customer offering in the Swedish building trade. It will also improve Södra’s ability to implement its Group strategy.
We look at specific needs and criteria when we develop our industrial structure. We are therefore delighted to welcome Ture Johanssons Trävaru and Tenhults to Södra. The companies will strengthen our operations and be an excellent complement along the E4 motorway. They have a long history in the area and will enable us to grow more together with our customers. We are looking forward to continuing to develop the operations together with the employees in Klevshult and Vaggeryd, said Peter Jhaveri, Interim President of the Södra Wood business area.
Add sawmill and treatment capacity
Founded in 1950, Ture Johanssons Trävaru (TUJO) has operated a sawmill in Klevshult since 1957. With 55 employees, the sawmill produces approximately 100 000 m3 of sawn timber annually. Production mainly focuses on the building materials trade and offers a range of planed and primed timber products.
In 1995, TUJO acquired AB Tenhults Impregneringsverk which is located at the Götafors industrial site in Vaggeryd and comprises four impregnation autoclaves. More than 100 000 m3 of timber are pressure treated at the facility every year. Tenhults has seven employees and is known for its environmental and NTR-certified processes.
Södra will create opportunities for the continued development of the operations. It feels great to be handing over the reins to a member-owned association – with solid local roots and a long-term ownership horizon. Together, we will make our customer offering even stronger, said Lennart Johansson, CEO, and son of the founder of TUJO.
Strengthen market position
Södra currently has six sawmills and two timber treatment facilities in Sweden. The newly acquired facilities are located in an area where Södra already has a stable raw material supply, but where it does not conduct its own industrial operations.
These acquisitions will now help to strengthen the market for wood in central Götaland (southern Sweden) and improve Södra’s position in the Swedish building trade.
This, in turn, will further strengthen the organization by increasing the overall capacity and creating synergies with Södra’s existing production units.
Södra is to ensure a market for its members’ raw materials and increasing the value of their wood. Having relevant industrial operations in relevant central locations is a key part of this. These acquisitions will allow us to do just that. Ture Johanssons Trävaru and Tenhults will strengthen Södra’s customer offering and market for wood in an important geographic area. This is in line with our Group strategy and will provide us with better conditions for sustainable and profitable growth, said Lotta Lyrå, Södra’s President and CEO.
The acquisition will take effect pending approval by the Swedish Competition Authority, a process that is expected to take up to six weeks.