Bergs Timber Announces Closure of Its Estonia Sawmill Facility
Bergs closes the sawmill in Estonia
Bergs Timber AB announced on Tuesday (7-25-23) that it intends to cease operations at its sawmill in Estonia. The mill is operated by Bergs’ subsidiary Laesti. According to the press release, operations will conclude in August, and the entire operation will be phased out in the autumn of 2023. The closure will impact approximately 30 employees.
Commenting on the closure, Peter Nilsson, President and CEO of Bergs Timber, said, “Although the local management is doing a good job, we do not see it as realistic to continue to operate and develop Laesti. The closure of the sawmill is part of the change in Bergs, where products with higher added value are prioritized.”
A letter of intent has been signed with the Estonian company Warmeston OÜ for the sale of land, buildings, and machinery. The transaction is expected to be completed in 2023Q2. The proposed new owner does not plan to operate the sawmill.
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