Type
Closure
Country
Sweden
Region
Mellersta Norrland; Västernorrlands län;
Location of affected unit(s)
Östavall
Sector
Manufacturing
Manufacture Of Wood And Paper Materials
Manufacture Of Wood And Of Products Of Wood And Cork, Except Furniture; Manufacture Of Articles Of Straw And Plaiting Materials
16.10 - Sawmilling and planing of wood

100 jobs
Number of planned job losses
Job loss
Announcement Date
24 September 2019
Employment effect (start)
Foreseen end date
1 June 2020

Description

Wood planing company Norrskog Wood Products announced plans to close its sawmill in Östavall by the beginning of summer 2020. The restructuring event is expected to affect 80 employees and additional 20 entrepreneurs, contracted by the company. According to management, the closure in Östavall is required to further invest in a more profitable and better located sawmill in Hissmofors. The municipality of Östavall has only 200 inhabitants, many of whom are now at risk of losing their jobs. For this reason, local political authorities established a crisis group and requested help from the county. There has been reportedly a demonstration of 500 people against the closure and a petition signed by 4,000 people, handed to the company's management. 

The company is a subsidiary of Norrskog, a forest owners' association.


Sources

Citation

Eurofound (2019), Norrskog Wood Products , Closure in Sweden, factsheet number 98912, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/98912.