New Layoffs at Balungstrand, Sweden, Sawmill
New notice at Balungstrand sawmill (translated)
Balungstrand has put five additional employees on notice, a precautionary move following 13 earlier layoff notices, CEO Stefan Gillberg told NTT Woodnet.
Earlier this year, Profura AB acquired the Balungstrand and Bäckebron sawmills after former owner Germany’s Ziegler Group went bankrupt.
“We have put additional five employees on notice, and it is more of a precautionary measure as we do not know where things will go during the fall and winter, and our employees who remain have long notice periods of five or six months,” Gillberg said.
The uncertain market forced the decision, and the CEO said he has difficulty predicting the outlook. “It’s really hard to say, the entire industry is in a slump where there is a lot of demand for raw materials and raw material prices are historically high. At the same time, we have a sales cycle that is a bit cautious worldwide,” he said.
Balungstrand produces about 80,000 m3 annually. Roughly 50% is sold on the Swedish market, and the rest is exported—mostly to Europe.
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