Moelven Vänerply AB is reducing plywood production at Otterbäcken mill in Sweden and is therefore forced to give notice of layoffs. This is a consequence of weak consumption in the market.
"For a long time we have seen a clear decline in the indicator of an ever lower construction activity, but we have until now still managed to keep the volumes at a good level. But now we are in a situation where we need to take this difficult step", says CEO Magnus Ingves at Moelven Vänerply.
Up to 18 people will be affected by the notification.
“It is a sad message to give to our talented colleagues, but unfortunately we have to act now in order to have a sustainable business going forward. The measures mean that we are reducing our production rate by approximately 20%", says CEO Magnus Ingves at Moelven Vänerply.
"Moelven has a long-term plan for the plywood factory, which is shown by the investment that was decided before the summer and which prepares us for tomorrow and future growth. The announcement now has no consequences for the investment, but it is clear that we would have liked to have all the employees there in anticipation of that the market is turning and we can increase capacity again," says Magnus Ingves.
Moelven Vänerply is located in Otterbäcken in Västra Götaland County and manufactures spruce and pine plywood. Approximately 110,000 cubic meters or approximately 6 million m2 of plywood are produced each year. The factory has approximately 160 employees who produce sheet material for the entire Scandinavian market.
