Another sawmill will disappear from Sweden\u2019s production map as high sawlog costs and weak lumber margins force producers to concentrate raw material at larger, modernised plants. The closure will remove approximately 110,000 m\u00b3 of annual pine lumber production and affect 38 employees.<\/p>\n
Moelven plans to close its \u00c5rj\u00e4ng sawmill in western Sweden after concluding that the operation lacks the financial basis required for continued production. The final shutdown date will be established following negotiations with trade unions.<\/p>\n
Founded in 1946 and acquired by Moelven in 2004, the mill specialises in processing medium-diameter pine sawlogs. Its output is sold to customers in Sweden and international markets. The plant\u2019s product profile and scale placed it between smaller specialist mills and the larger automated facilities that increasingly dominate Scandinavian softwood lumber production.<\/p>\n
Moelven had already attempted to improve the mill\u2019s economics. Around a year ago, ten employees were given notice as the company introduced a revised production concept. \u00c5rj\u00e4ng shifted towards species-specific products based on larger average log diameters, while smaller-diameter sawlogs were redirected to two mills equipped with newer processing technology.<\/p>\n
The objective was to create a more uniform raw material flow, reduce product changes and improve lumber recovery. A narrower log diameter range generally allows a sawmill to optimise sawing patterns, line speeds and sorting. It can also reduce downtime and simplify the allocation of sideboards and centre products.<\/p>\n
Despite these adjustments, the plant did not achieve the profitability required for further operation. Moelven cited high raw material costs relative to finished lumber prices, inflation and several years of difficult market conditions.<\/p>\n
Sawlog costs represent the largest single cost component for most Nordic sawmills. Profitability therefore depends heavily on lumber recovery, production speed and the value obtained from chips, sawdust and bark. Smaller plants are particularly exposed when log prices rise faster than selling prices because they have fewer possibilities to spread fixed costs across higher production volumes.<\/p>\n
Moelven will now concentrate a larger share of its timber consumption at facilities where it has invested in higher-capacity equipment. Since 2021, the group has carried out major development programmes at Edanes\u00e5gen and Val\u00e5sen.<\/p>\n
At Edanes\u00e5gen, the investment covered the production chain from log sorting and intake to the saw line and drying operations. At Val\u00e5sen, Moelven installed a new energy centre, upgraded sawlog intake and camera-based sorting, and added a saw line designed for smaller-diameter timber.<\/p>\n
These systems allow logs to be measured and classified more accurately before sawing. Each log can then be allocated to a sawing pattern based on diameter, shape and expected product value. Higher automation also supports faster line speeds, more consistent grading and better coordination between sawing, drying and finished-product sorting.<\/p>\n
Redirecting timber from \u00c5rj\u00e4ng should improve capacity utilisation at these modernised sites. It may also allow Moelven to extract more lumber and by-product value from the same quantity of sawlogs while reducing maintenance, staffing and energy costs per cubic metre.<\/p>\n
The closure forms part of a wider reduction of Moelven\u2019s smaller sawmill capacity. In 2025, the group closed its Ransby sawmill in Sweden and the L\u00f8ten pine mill in Norway. The latter had annual production capacity of approximately 40,000 m\u00b3.<\/p>\n
Moelven\u2019s forestry and timber purchasing activities in \u00c5rj\u00e4ng will continue. The local forestry office, its employees and cooperation with forest owners are not included in the closure. Sawlogs previously delivered to \u00c5rj\u00e4ng can therefore be redistributed within the group\u2019s regional network, although transport distance, species and diameter will determine the most suitable receiving mill.<\/p>","protected":false},"excerpt":{"rendered":"
Another sawmill will disappear from Sweden\u2019s production map as high sawlog costs and weak lumber margins force producers to concentrate raw material at larger, modernised plants. The closure will remove approximately 110,000 m\u00b3 of annual pine lumber production and affect … Continue reading