Swedish sawmill group JGA was unable to increase production for three years despite strong demand after its Linneryd mill reached the 250,000 m\u00b3 annual ceiling imposed by its former environmental permit. The delay cost the company an estimated SEK 100 million (\u20ac9 million) in lost revenue, according to CEO Claes Andersson.<\/p>\n
Global Wood Markets Info (GWMI) followed a seminar on environmental permitting organised by the Swedish Forest Industries Federation, where Andersson provided new details about the commercial effects of the process. The discussion also included Swedish MEP Emma Wiesner, the European Parliament\u2019s rapporteur on proposed legislation to accelerate environmental impact assessments, and Helena Dyrssen, State Secretary to Sweden\u2019s Minister for Climate and the Environment.<\/p>\n
The figures provide additional context to the production permit granted to JGA earlier this year. As GWMI reported in May, the authorisation raises permitted annual lumber output at Linneryd from 250,000 m\u00b3 to 400,000 m\u00b3, an increase of 150,000 m\u00b3 or 60%.<\/p>\n
JGA began preparing its application in 2019 after concluding that the sawmill would soon reach its authorised ceiling. The formal application was submitted in 2021, but approval from the Environmental Assessment Delegation in Kalmar was not received until 19 February 2026.<\/p>\n
The company is now completing the technical and administrative preparations required to operate under the new permit.<\/p>\n
JGA held production below market demand<\/strong><\/p>\n Andersson said investments in sawmilling technology, stronger customer demand and production improvements had gradually taken the Linneryd mill to the maximum volume permitted under the previous authorisation.<\/p>\n Once the 250,000 m\u00b3 ceiling had been reached, JGA could no longer raise output in line with orders, even though the mill had sufficient technical capacity and demand remained favourable.<\/p>\n The proposed expansion did not require JGA to exceed the site\u2019s existing emission limits, Andersson said. The company was primarily seeking permission to produce more lumber using infrastructure and equipment already installed at Linneryd.<\/p>\n \u201cThe fact that it took longer than we had expected meant that we had to restrict production for three years during a period of relatively good demand,\u201d Andersson said.<\/p>\n Based on calculations prepared by the company, he estimated that the restrictions removed around SEK 100 million (\u20ac9 million) from JGA\u2019s potential revenue. The delay also affected investment, employment and activity connected with log procurement, transport and maintenance.<\/p>\n Higher turnover would have allowed JGA to introduce further production technology more quickly, according to Andersson.<\/p>\n Investments prepared Linneryd for higher output<\/strong><\/p>\n JGA has carried out several major investments at Linneryd, including a new intake line for small-diameter logs, a new log measurement frame and a new TC drying kiln, together with improvements to internal logistics.<\/p>\n The small-log intake line expanded the mill\u2019s ability to receive, measure and sort smaller-diameter softwood sawlogs. The additional kiln increased the volume of lumber that can be dried and prepared for customers, while the logistics upgrades were intended to reduce bottlenecks between log intake, sawing, drying, sorting and dispatch.<\/p>\n These investments prepared Linneryd for higher throughput, but the previous permit prevented JGA from using the installed capacity fully.<\/p>\n The new authorisation allows annual lumber output of up to 400,000 m\u00b3. Actual production will continue to depend on log availability and market demand, but the company now has room to adjust output without immediately encountering another regulatory ceiling.<\/p>\n JGA is a fourth-generation Swedish family business established in 1928 and based in Sm\u00e5land, south of V\u00e4xj\u00f6. The group generated revenue of around SEK 1.4 billion (\u20ac127 million) in its latest financial year and employs approximately 130 people at the Linneryd sawmill and offices across southern Sweden.<\/p>\n The company processes softwood sawlogs into sawn and planed lumber for construction and industrial customers. Its operations cover log purchasing and intake, sawmilling, kiln drying, grading, planing and distribution.<\/p>\n Repeated information requests prolonged the process<\/strong><\/p>\n Andersson said the duration of the application was not simply the result of insufficient staffing at the responsible authority. Uncertainty over the required documentation and repeated requests for additional information also extended the process.<\/p>\n Before its final supplementary submission, JGA spent another two and a half months reviewing its documentation because it feared that an omission would lead to a new round of questions.<\/p>\n According to Andersson, earlier and more direct communication between the authority and the applicant could have resolved many of these issues more quickly. He argued that the future permitting authority should provide practical guidance during an application, while any challenge to its decision would remain part of the subsequent appeal process.<\/p>\n Digital systems could make applications more efficient, but they should not replace direct contact between technical officials and companies when documentation is incomplete or unclear, he said.<\/p>\n Sweden targets a new permitting system by 2030<\/strong><\/p>\n Sweden is preparing to replace its 12 regional Environmental Assessment Delegations with a single national environmental permitting authority. The new body will be headquartered in Stockholm but is expected to operate from several locations.<\/p>\n It may later assume some responsibilities currently held by Sweden\u2019s land and environment courts.<\/p>\n The reform is intended to reduce fragmentation and provide companies with a single point of contact. Sweden currently has 290 municipalities, 21 county administrative boards, 12 Environmental Assessment Delegations and several courts involved in different parts of environmental permitting.<\/p>\n According to Dyrssen, the fully reformed system, including the necessary legislative changes, is expected to be in place around 2030. The government is introducing it in stages because of the number of authorities, laws and industries affected.<\/p>\n A centralised authority may produce more consistent decisions, but Andersson warned that institutional reform alone will not eliminate delays if the scope of applications remains unclear and authorities continue to request additional documentation throughout the process.<\/p>\n EU proposal could define assessments earlier<\/strong><\/p>\n Parallel EU legislation could require authorities to establish both the timetable and the scope of an environmental assessment at an earlier stage.<\/p>\n Wiesner\u2019s draft report proposes that the responsible authority inform the applicant at the beginning of the process which issues will be examined. Substantial demands for additional information at a later stage would require specific justification.<\/p>\n Wiesner said the accumulation of supplementary requirements, rather than the formal time assigned to an individual administrative step, is often what causes permitting procedures to last for years.<\/p>\n She supports digitalised applications and a single point of contact but opposes rigid EU deadlines prescribing an exact number of days for every stage. Her preferred approach would require authorities to provide a clear schedule adapted to each project.<\/p>\n This would give companies a more predictable investment timetable without applying identical deadlines to a sawmill expansion, a solar installation and a large industrial project with substantial additional environmental effects.<\/p>\n Sawmills risk exclusion from strategic fast tracks<\/strong><\/p>\n The European Commission has proposed faster procedures for sectors designated as strategic, including semiconductor production, data centres, defence, housing, renewable energy and electricity infrastructure.<\/p>\n Wiesner removed the sector list from her draft, arguing that faster procedures should be available to all industries. Modern value chains make it difficult to determine which manufacturers qualify as strategic, while companies outside the selected categories could be placed at a permanent disadvantage.<\/p>\n The JGA case shows the potential problem for the wood industry. A sawmill producing renewable construction material may support housing, industrial production and climate objectives without falling within a narrowly defined strategic category.<\/p>\n Andersson also rejected sector-specific fast tracks. If a permitting procedure can be simplified for one industry without weakening its legal or environmental requirements, the same improvement should be considered for other applicants, he said.<\/p>\n One alternative discussed during the seminar would classify applications according to their actual environmental effects. Projects without significant additional impact could follow a simpler route, while activities with substantial effects would remain subject to a more extensive assessment.<\/p>\n The 400,000 m\u00b3 permit has now removed the immediate constraint at Linneryd. Before its approval, JGA says it lost three years of potential production and approximately SEK 100 million (\u20ac9 million) in sales.<\/p>","protected":false},"excerpt":{"rendered":" Swedish sawmill group JGA was unable to increase production for three years despite strong demand after its Linneryd mill reached the 250,000 m\u00b3 annual ceiling imposed by its former environmental permit. The delay cost the company an estimated SEK 100 … Continue reading