Holmen to Invest in Expansion of Iggesund Sawmill Capacity

The investment in new planing facility along with upgrades to log sorting will remove bottlenecks.

SEATTLE (Scrap Monster): Holmen announced plans to invest SEK 400 million to boost capacity at Iggesund sawmill. The proposed investment will boost production by 20% and also add construction timber on top of its joinery products range. It is in line with the company’s earlier announced strategy to grow its wood products business by contributing to the green transition.

The investment will help Holmen to boost the sawmill’s capacity to over 450,000 cubic metre. It expects start-up of operations by autumn 2023, with full capacity to be reached towards end-2024. The investment in new planing facility along with upgrades to log sorting will remove bottlenecks.

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Further to the investment, the sawmill will see a switch from lower grade joinery spruce to construction timber in both spruce and pine. This in turn will boost the value added and improve the market mix.

Henrick Sjolund, President and CEO, Holmen commented that the company continues to focus on adding value to the forest it owns. Holmen’s strategic position is right on point financially and in terms of climate. The investment in Iggesmund sawmill is the next step in strengthening its position in wood products, he added.