Derome has postponed a major sawmill investment indefinitely, saying stronger earnings are needed before the project can proceed. The expansion remains part of the company\u2019s plans, but no revised timetable has been set.<\/p>\n
Derome Timber chief executive Linda Andersson told Swedish broadcaster SVT that market conditions have been weak since 2022. Proceeding with the investment would require several years of profitable operations, she said. The postponement was first reported by regional newspaper Hallands Nyheter.<\/p>\n
The company still expects the market to recover, although the timing remains uncertain. In comments to Hallands Nyheter, subsequently reported by Woodnet, Andersson said current profitability was insufficient to fund an investment of this size. Woodnet reported that the proposed expansion would increase production of both sawn timber and pellets fivefold.<\/p>\n
When Derome presented the project in 2021, demand for wood products was increasing. The plans included a new sawmill and around 50 additional jobs, alongside the relocation of a road running through the industrial site to accommodate the larger operation. Implementation was initially expected to take seven to eight years. At the time, the Kinnared operation employed approximately 75 people.<\/p>\n
Kinnared already combines sawmilling, planing and pellet production. According to Derome, the pellet plant processes sawdust supplied by the group\u2019s sawmills, making the site part of its wider system for converting sawmilling residues into biofuel. The proposed expansion would therefore cover both timber processing and the use of its by-products.<\/p>\n
Elsewhere in the group, a major investment has already been completed. In April 2025, Derome inaugurated a new sawing line at its separate mill in the village of Derome, following expenditure of more than SEK 600 million (\u20ac54.7 million). That modernisation had been under way since 2022 and covered much of the production process, from log intake to green sorting.<\/p>\n
The company said the new line increased production capacity while improving the recovery of boards and planks from each log. Better raw-material recovery was a central objective of that project, allowing the mill to obtain more saleable timber from the wood it processes.<\/p>","protected":false},"excerpt":{"rendered":"
Derome has postponed a major sawmill investment indefinitely, saying stronger earnings are needed before the project can proceed.<\/p>","protected":false},"author":1,"featured_media":100502,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100501","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n