Stockholm, Sweden 07 June 2018 -- Södra is divesting Södra Wood Kallinge and Södra Wood Umeå to the German company Sörnsen Holzleisten. The divestment date is 1 September 2018. Trade union negotiations in regard to the divestments will commence immediately.
Södra Wood Kallinge produces mouldings, panelling and solid wood flooring, and has about 80 employees. Södra Wood Umeå produces mouldings and panelling, and has about 20 employees. Scandinavia is the core market for both units.
"Last year, Södra Wood Grimslöv, UAB SIWood and Södra Wood AS were sold to Sörnsen. The operations in Kallinge and Umeå are now being sold to the same buyer. The acquisition of Kallinge and Umeå increases Sörnsen's market share, and with competitive production and our strong sales and distribution organisation, they will be able to move the interior business in a positive direction. The acquisition will make Sörnsen a stronger, more stable and more competitive company," said Peter Karlsson, Head of the Interiör business segment.
During spring and summer, Södra will be co-locating the Ronneby and Kallinge units in Kallinge. The investment and co-location will be finalised in connection with the divestment.
"The decision is part of the strategic direction that Södra Wood has chosen and helps us to focus more clearly on our other initiatives. Our investments have created favourable conditions for Sörnsen to further develop the business. Interior products are Sörnsen's core business, mouldings specifically, which means they will be better able to manage and develop the interior business in the market," said Peter Karlsson.
The buyer, Sörnsen Holzleisten, is the largest supplier of mouldings in Europe. The company was founded in 1945 and has multiple units in northern Germany, Estonia, Sweden and Lithuania. The company produces a wide range of mouldings, in a selection of woods, and sells them to countries all over the globe.
"Due to Södra's investments, the Kallinge and Umeå units will fit well with our structure. Moreover, sales are conducted in the markets where Sörnsen is planning to expand, so the acquisition works perfectly with our geographic expansion. The acquisition gives us proprietary production of panelling and solid flooring, and further strengthens our customer offering. The name of our Scandinavian business activities is S Wood. It symbolizes our local production and distribution in Sweden and Norway and thus represents a signal for all market participants: Rethink your sourcing strategy and co-operate with Scandinavian producers" said Robert Sörnsen, CEO of Sörnsen Holzleisten.
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