Sweden's largest wood pellet producer Scandbio AB has announced that it has completed production capacity investments at its Malmbäck pellet plant and signed a sales agreement for its shuttered Vaggeryd plant.
In May 2019, Scandbio announced that it would discontinue pellet production at its Vaggeryd facility and relocate pellet production to its other plants. In parallel with the investments made to reallocate pellets production, various solutions have been investigated regarding the future of the Vaggeryd plant, which has resulted in a signed agreement on a divestment.
The now completed investments in Malmbäck include an expanded raw material yard, additional pelletizing capacity for both fuel and bedding pellets, and the relocation of equipment for bagging in big bags and small sacks. Some equipment has also been moved to other plants in Sweden and Latvia to maintain the total production capacity within the group.
Through the investments in Malmbäck, we create the conditions for consolidating our position as an important player in the pellet market and helping our customers in the transition to a renewable energy solution. An agreement has been signed regarding the sale of the plant in Vaggeryd to Vaggeryd Logistikpark AB, which is scheduled to be implemented as of September 1, said Daniel Andoff, CEO of Scandbio.