Moelven Norsälven AB to be discontinued
The Board of Moelven Norsälven AB has today decided to close down the sawmill. This is because investment needs in the plant are extensive and will not result in the necessary profitability.
The Chairman of the company, Managing Director Anders Lindh of the Moelven division Timber, says that even with significant investments, it is not possible to achieve a forward-looking and profitable plant.
“It is with a heavy heart we close down a business, and it’s a difficult time for the employees at the company. Unfortunately, Moelven Norsälven currently has a very low technical status and requires extensive ongoing maintenance to keep up operations. It is only a matter of time before operations become untenable,” Lindh says.
Lind says that Moelven currently doesn’t recognize opportunities to prioritize funds for extensive investments with such uncertain returns.
“In recent years investment funds in Moelven have been limited, and are therefore directed at those companies and projects with the best assumptions to create profitability. The discontinuation of Moelven Norsälven is a part of an overall assessment. It is a structural decision in order to create better profitability for the Moelven group as a whole,” Lindh says.
A meeting has been held with the staff to inform them of the decision to close the plant.
“In the next few days negotiations will be held with the employees' unions with regard to implementation of the redundancies,” says Chairman of the Board Anders Lindh.
A plan will now be prepared for winding down activity in the company. It is assumed that this will be more or less completed in the first quarter of 2018.
See the previous press release on the matter. or further information please contact:
Anders Lindh, mobile +47 94 83 34 45
Moelven industrier ASA is a Scandinavian industrial group that supplies products and associated services to the Scandinavian building market. The Group's businesses employ over 3.600 persons and have a total annual turnover of some NOK 10 billion. The Group's close to 52 business production units are organised into three divisjons: Timber, Wood and Building Systems.
www.moelven.no
www.moelven.se
www.moelven.dk
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