Vida Group will permanently close its sawmill operations in Orrefors and Urshult, Sweden, after citing an imbalance between production capacity and access to fibre in southern Sweden, Canfor Corporation said.

The closures will reduce Vida's annual lumber production capacity by approximately 265 thousand m3. Canfor holds a 77% stake in Vida AB.

At Vida's sawmill in Orrefors, the mill saws and planes pine timber into structural timber, and a large part of output is treated with wood preservatives on a subcontract basis. The site has 45 employees and timber production of 145 thousand m3 per year, with markets split 40% Great Britain, 40% Sweden, and 20% other exports.

At Vida's sawmill in Urshult, the mill saws and planes 4.9 m spruce timber into structural timber. The site has 30 employees, timber production of 185 thousand m3 per year, and planing capacity of 130 thousand m3 per year, with markets of 60% Great Britain, 15% Japan, 15% Germany, and 10% other exports including the USA.

After the closures, Vida will operate 13 sawmills across central and southern Sweden, along with facilities in packaging, specialty finishing, and logistics.