Bergs Timber Unleashed Fresh Strategy Initiatives and Financial Targets

SEATTLE (Scrap Monster): Sweden-headquartered Bergs Timber announced that its Board of Directors has decided on new financial targets and strategic initiatives for its operation.

Earlier in 2020, the Group had offloaded its Swedish sawmill business. The company now foresees possibilities of developing existing operations at a faster pace. The current financial situation of the company also allows for possible acquisitions to ensure further growth of its business in the region.

As per the new strategic orientation plan, it aims to serve as an active ownership company, developing independent subsidiaries with clear-cut responsibilities. Such a move is expected to deliver increased pace of development for products as well as services. In addition, it foresees higher and more stable margins.

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The Group’s existing seven subsidiaries will be organized into reporting segments- Wood Protection, Joinery, Sawn Wood and Other. It plans to invest approximately SEK 500 million over the next three years in organic growth opportunities. The top priority will go for sustainability initiatives and digitalization, noted Michael Bertorp, Chairman of the Board of Bergs Timber.

The new financial targets include annual growth and EBITDA margin over a business cycle of 10% and 9% respectively.