SWEDEN (News release) -- Södra is acquiring Bergvik Skog AB's forest holding in Latvia. The total area is 111,100 hectares, of which 80,300 comprise forest land.
"This investment will secure some of our need for forest raw material. It will improve the structure of our wood imports by complementing our members' wood deliveries and strengthening Södra's competitiveness," said Lars Idermark, President and CEO of Södra.
Södra already owns 15,000 hectares of forest land in Latvia, and this acquisition will substantially strengthen the company's position.
"The new holding is also a good capital investment as a base for Södra's future development, which obviously benefits our 51,000 members," said Lena Ek, Chair of Södra.
The acquisition comprises all shares in two companies, SIA Bergvik Skog and SIA Ruda, and includes the forestry organisation with 24 employees.
"Latvia is, and will continue to be, a central import source for Södra's raw material supply. The acquisition of new forest land will increase our opportunities for good cooperation in the Latvian market. We will also continue to follow Bergvik Skog's direction of developing sustainable forestry with high forest management ambitions," said Olof Hansson, President of the Södra Skog business area.
The forest soil is highly fertile and growth will increase over the coming decades. The growing stock volume is currently 10.6 million m³. The purchase consideration is EUR 324 million.