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Scandbio to shutter Vaggeryd plant

Sweden's largest wood pellet producer Scandbio AB has recently revealed that it will cease production operations at its Vaggeryd facility and that it has already initiated a wind-down process. The shuttered production capacity will be transferred to its other facilities in southern Sweden.

Sweden’s largest wood pellet producer Scandbio is to cease production operations at its Vaggeryd facility transferring the shuttered production capacity to its other facilities in southern Sweden (photo courtesy Scandbio).

According to a statement, Scandbio began the process to cease operations at its Vaggeryd facility on May 16. The plant, which produces around 115 000 tonnes per annum for the Swedish and Danish markets, has 14 employees and produces pellets for bagged and bulk supply.

Production will be relocated to the company’s other plants in southern Sweden. Market conditions require consolidation of the business in order to maintain competitiveness as a leading pellet producer in Scandinavia was cited as the reason to shutter the plant.

It is a sad message to have to give to all our employees in Vaggeryd. The change will not affect either delivery to our customers or the business relationship with our suppliers, said Daniel Andoff, Interim CEO at Scandbio, who was recently appointed following former CEO Peter Granborn’s departure from the company last month.

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