8/16/2012

More planks and boards

Derome Timber invests SEK 50 million for a greater yield from its
sawmill in Derome

Despite a drop in demand and a drop in the price of timber products in Europe, as a result of a slump in construction, sawmills continue to pay a good price for timber. Derome wishes to continue doing this and is now investing heavily in order to be able to extract more timber products from each log that passes the saws. A necessary investment, according to Derome Timber's CEO Gunnar Jakobsson:

“In order to ensure a reasonable return for forest owners, we must constantly work to increase yield per saw. In other words, we need to become more efficient and extract more planks and boards from the timber. We are doing this by renovating our largest sawmill.

The renovation will not only increase yield. It also means a 25% capacity increase from 200,000 to 250,000 m3 of timber a year.”

“During the first six months of the year, we sold greater volumes than we can saw, so despite the tough economic situation the industry is faced with, we have a positive outlook. Our strategy to refine the raw materials as far as possible has been successful, even during the recession,” explains Gunnar Jakobsson.

“But Derome will not be increasing saw production until the market allows. An even greater excess of timber products on the overall market would press the already low prices even lower, with less money going to forest owners as a result,” concludes Derome Timber's CEO.
 

Facts about the investment:

  • The saw line at the Derome sawmill is being renovated for approx. SEK 50 million
     
  • The renovation will be carried out during the winter 
     
  • The existing first saw will be equipped with two extra blades, in order to extract more boards and planks from the log, parts that were previously made into chips. Supplier: AriVislanda, Sweden
     
  • The separation line is being replaced with new machines with active curve sawing that follow the shape of the log better. Also included in the new line will be profiling element that mill out the boards on the block.
    Supplier: Linck, Tyskland
     
  • An 1-2% increase in saw yield
     
  • An increase in the capacity at the sawmill in Derome from 200,000 m3 to 250,000 m3 timber products a year. Derome Timber has, after the investments, an overall capacity of 500,000 m3 split between their three sawmills in Derome, Anneberg and Kinnared
     

Foto: Linck