Stockholm, Sweden 21 October 2015 -- Södra Wood has decided to concentrate its flooring production from three to two mills. This means that the Sunds facility in Denmark will be closed, and that all production will be relocated to Kallinge and Föllinge in Sweden.

The reason is that Södra Wood wants to increase profitability by reducing transport costs and exploiting economies of scale. The mills in Sweden will be able to integrate all of Sunds' production without increasing their personnel.

Sunds produces approximately 75,000 square metres of flooring per year. Production mainly comprises untreated, oiled and varnished flooring, from both softwood and hardwood.

Relocation of production to Sweden is scheduled to be completed by year-end, and the facility will be phased out at the beginning of 2016.

The closure will affect four employees and the change will be negotiated under Danish labour law.

"This is obviously a sad turn of events for those concerned, which I regret. We provide various forms of support for employees who become redundant," says Håkan Svensson, President of the Södra Wood business area.