Södra to acquire Bergvik Skog’s forest holding in Latvia

Södra is acquiring Bergvik Skog AB’s forest holding in Latvia. The total area is 111,100 hectares, of which 80,300 comprise forest land.

“This investment will secure some of our need for forest raw material. It will improve the structure of our wood imports by complementing our members’ wood deliveries and strengthening Södra’s competitiveness,” said Lars Idermark, President and CEO of Södra.

Södra already owns 15,000 hectares of forest land in Latvia, and this acquisition will substantially strengthen the company’s position.

“The new holding is also a good capital investment as a base for Södra’s future development, which obviously benefits our 51,000 members,” said Lena Ek, Chair of Södra.

The acquisition comprises all shares in two companies, SIA Bergvik Skog and SIA Ruda, and includes the forestry organisation with 24 employees.

“Latvia is, and will continue to be, a central import source for Södra’s raw material supply. The acquisition of new forest land will increase our opportunities for good cooperation in the Latvian market. We will also continue to follow Bergvik Skog’s direction of developing sustainable forestry with high forest management ambitions,” said Olof Hansson, President of the Södra Skog business area.

The forest soil is highly fertile and growth will increase over the coming decades. The growing stock volume is currently 10.6 million m³. The purchase consideration is EUR 324 million.

For more information, please contact:
Södra’s Pressroom
Phone: +46 (0)470 890 90
E-mail: press@sodra.com

Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 51,000 forest owners. We engage in modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. Net sales in 2017 were 20.5 SEK billion and there were 3,400 employees. Through value-generating relationships and a long-term approach, Södra is leading the way for the future of sustainable forestry.

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Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of close to 52,000 forest owners. Södra is also an international forest industry Group, with 3,400 employees around the world. Net sales in 2017 were 20.5 SEK billion. Balancing production efficiency with nature conservation guides everything that we do. We produce timber, interior wood products, pulp for paper and textiles, and green energy. We use every part of the tree, and are always looking to develop new products from this fantastic, renewable raw material. Södra is a world-leading producer of market pulp and also owns one of the largest sawmill operations in Europe. Through value-generating relationships and a long-term approach, Södra is leading the way for the future of sustainable forestry.

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