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Södra Initiates Process to Close Down Berg & Berg Parquet Flooring Unit in Sweden

Berg & Berg parquet flooring Södra acquired Berg & Berg in 2012. It is a unit in the Södra Group that manufactures parquet flooring and has a strong brand, particularly in Germany and Austria.

Nov. 21, 2018 - Södra is initiating a process to close down Berg & Berg in Kallinge, Sweden. Trade union negotiations will begin as soon as possible, and will affect all 60 employees.

Södra acquired Berg & Berg in 2012. It is a unit in the Södra Group that manufactures parquet flooring and has a strong brand, particularly in Germany and Austria.

Berg & Berg has been on the market for some time but Södra has been unable to sell the company, and this is the reason for the closure, Södra noted.

“This is a regrettable decision to have to give to all of our coworkers at Berg & Berg,” said Jörgen Lindquist, President of the Södra Wood business area.

The background to the closure is Södra's decision last summer to withdraw from the interior wood segment, which includes parquet flooring, and the sale of its other operations in the segment. An announcement was made at that time concerning the sale of Berg & Berg.

Peter Karlsson, Head of the Södra Interior segment, explained, "We had hoped to find a new owner and have long been discussing with various interested parties in an attempt to find a good solution, but this was unfortunately unsuccessful. Berg & Berg is currently not profitable and is facing major investments. However, the unit is still not expected to generate satisfactory profitability even after these investments, which was also the conclusion drawn by the interested parties. We must therefore now initiate a process to close down our parquet flooring operations in Kallinge. As a result, there will be no units left in the interior segment.”

“This is a tough decision to give to our employees. We will now do everything we can to ensure that this process is managed as well and as swiftly as possible,” Karlsson added.

Södra, with headquarters in Vaxjo, Sweden, produces market pulp, wood products and biofuels. The company operates three pulp mills in Sweden (Mörrum, Mönsterås and Värö.) with a total capacity of 1.6 million tonnes per year. Sodra produces both softwood and hardwood pulp — 90% softwood and 10% hardwood. To learn more, please visit: www.sodra.com.

SOURCE: Södra