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Weda Skog AB

Weda Skog takes a big leap forward

Weda Skog AB is now to become the company that is responsible for transactions with those forest owners who sell their logs to Moelven Dalaträ AB and Bergkvist-Insjön. Bergkvist-Insjön has a 70% holding in Weda Skog AB and Moelven has a 30% stake.

“In the past 10 years we have built up the Weda Skog brand name and it feels right that we will be able to take such a strong brand name forward in our cooperation with Bergkvist-Insjön,” says Johan Padel, divisional manager of Moelven Timber, which includes Moelven Dalaträ AB.

“It is a great advantage for Moelven to be able to continue our co-operation with Bergkvist-Insjön in this region. In those districts we do not have in common with Bergkvist-Insjön, wood procurement will be handled by Moelven Skog AB,” says Johan Padel.

Moelven is a Norwegian owned company with a turnover of some SEK 8 billion and operations, in addition to Norway, in some 30 places in Sweden.

It has now been decided that the old company with its head office in Karlstad will be split up. Employees at what was previously known as Weda Norr will now work for Weda Skog AB, which will have its head office in Insjön. Offices are located in Borlänge, Falun, Svärdsjö, Rättvik, Mora, Vansbro, Mockfjärd, Bollnäs, Hede and Sveg. Buyers are being recruited for Säter and Hedemora, which are part of the operational district. There are now over 20 buyers but the company will eventually have more than 30 employees once all the positions have been filled. There will be a finance unit at the Insjön office, as well as co-ordination of logistics and forest production.

Weda Skog AB also plans to take over parts of the biofuel business, for which Sågbränsle in Falun is currently responsible, at the end of 2010, along with employees with specific expertise in this field. The intention is that they will be based in Borlänge. They will work for Weda Skog and also for other forest players in the area. The bio-products produced by the sawmills will make Weda Skog AB a major supplier.

Erik Andersson, former regional manager of Weda Norr, who will manage Weda Skog AB from its headquarters in Insjön, says:

“We are taking a big leap forward into our distinct role as the company that buys wood for Bergkvist-Insjön and Moelven Dalaträ. We will continue to work with the distinct strategy that Weda Skog AB has as a specialist supplier of a selective range of products. As before, timber that does not suit our sawmills will be traded or sold to other interested parties. We will become a major seller of pulpwood, and look forward to integrating a specialist biofuel company into the business. With the changes now being made Weda Skog AB will be a perfect combination of a flexible company of the necessary size with strong owners and a full-service partner for forest owners,” adds Erik Andersson.

The split up of the old business that was spread across the whole of mid-Sweden means that Bergkvist-Insjön and Moelven will take a firm grip on the “Weda Skog” brand name and promote it in Dalarna, Hälsingland and Härjedalen.

There is a new legal entity behind the brand name, while the old company with its head office in Karlstad will be wound up in an orderly manner. This means that Weda Skoga AB’s employees will also handle transactions with forest owners whose contacts are with the old company in Karlstad.

“Weda Skog AB is the organisation we have for direct business with forest owners. It is fascinating that, via our sawmill, timber purchased by Weda Skog AB will finally end up as an input material in a factory in a country such as China or Japan, a tendency that has become more evident after our participation in the World Expo in Shanghai. Many times the transactions are small-scale and begin with Weda Skog AB buying some timber which, after having passed through the entire chain from wood purchase, ends up in Algiers at a carpenter’s, who makes high quality components for a new house. At the same time, we earn money for the country, from which everyone benefits,” says Peter Eklund, Managing Director of Bergkvist-Insjön.

Weda Skog AB, whose head office is located in Insjön, will become operational as of 1 October 2010; it is estimated to have annual turnover of almost one billion kronor.

Questions relating to this press release should be addressed to:

Johan Padel +47 4154 06 45

Erik Andersson +46 (0)70 314 18 51

Peter Eklund +46 (0)70 373 97 35