Billerud Skog AB is taking over the wood supply organisation at BAC Såg & Hyvleri AB including stocks of standing forest. The agreement means that Billerud Skog now has a comprehensive organisation with broad local coverage in Norrbotten, northern Sweden. Billerud Skog has committed to maintain supplies of a large amount of timber back to BAC.
The agreement with BAC Såg & Hyvleri AB covers staff involved in wood purchasing, felling and transport, and administration of supplies amounting to around 200,000 m3 fub per year.
“This wood supply organisation fits very neatly into our existing organisation. We are expanding our purchasing capacity on the local wood market significantly. Together with the organisation we have already established we can now provide a complete and comprehensive service with extensive experience and good local coverage throughout the region where Billerud Karlsborg is based. Co-operation with the local sawmill industry is being strengthened too, now that we can also deliver increased volumes externally,” explains Johan Sakari, CEO of Billerud Skog.
The agreement means that BAC Såg & Hyvleri can rationalise its structure and focus on production, development, adding value and selling sawn timber products.
Stockholm 20 August 2008
Billerud AB (publ)
President and CEO