Swedish wood products company Vida is growing its operations in Central Sweden through the purchase of three sawmills, a move that strengthens its position in Europe’s forest-based economy, reports Bioenergy Insight.
The company, which is 77% owned by Canada’s Canfor Corporation, has entered into an agreement to acquire AB Karl Hedin Sågverk. The sawmills are being purchased from Mattsbo Såg AB and other minority shareholders for around €102 million (1.15 billion SEK), which includes €24 million in working capital.
This acquisition will add roughly 230 million board feet to Vida’s yearly output, increasing its total annual production to about 2.1 billion board feet.
Vida expects to save up to €9.3 million each year within three years by improving log sourcing, simplifying operations, and unifying marketing strategies.
Canfor President and CEO Susan Yurkovich said the new facilities would help Vida expand both its reach and range of products. “These sawmills are located in a region with excellent timber and will be a great fit with the rest of Vida’s operations,” she said.
The sawmills are located in Central Sweden, an area known for its strong forestry sector and large supply of timber. This region also plays an important role in Europe’s renewable energy supply, with wood waste and byproducts commonly used in biomass energy, heating systems, and biofuel.
While the deal is focused on lumber production, it also boosts Vida’s presence in the biomass industry. In Sweden and across the European Union, sawmills supply not only construction timber but also materials like wood chips and bark, which are used in energy production and manufacturing.
Vida already runs several sawmills and forestry operations throughout Sweden. By acquiring AB Karl Hedin Sågverk, the company will gain greater access to sustainably managed forests and improve its ability to supply both timber and biomass feedstock.
The deal will be funded using a mix of existing cash and new investment from minority shareholders. It is expected to be finalized in the coming months, pending regulatory approval and standard closing conditions.
