Forest owners in northern Sweden form a new, large and strong association

The boards of Norrskog and Norra have unanimously decided to recommend to their members that the associations merge into one joint forest owners’ association.

Over the past six months, the two boards have been conducting talks on good forms of cooperation moving forward. As a result of this dialogue, the boards of both Norra and Norrskog have come to the conclusion that the time is now ripe to join forces and create a new association. This marks the beginning of something completely different. A strong, new joint forest owners’ association will deliver much improved conditions for private forest owners in northern Sweden. 

How will the formation of a new association affect you as a Norra customer?

Norra Timber will be further developed to make it a leading sawmill company, with production of around 750,000 m3 per year of sawn products and planing of 200,000 m3 per year, spread across six units. A modern, new and larger industrial operation enhances the potential to be an extremely competitive actor into the future. As you know, all the raw material comes from family forests in northern Sweden, which is home to the best raw material sources in the country – paving the way for superb product quality. We guarantee that we will continue to focus on serving all our customers in the best way possible, just as we have always done, but shortly with the addition of products from plants in Jämtland. My ambition is that, as a Norra customer, all you will notice is our broader range of products and services, as Norra’s organisation sees further growth through this historic merger. Our intention is to integrate Norrskog’s remaining industrial units into our regular operations. This means that you will continue to deal with your usual contact person here. This is the largest merger the forest owners’ movement has seen in 90 years and customers will undoubtedly see the benefits. 


Erik Eliasson, Marketing Director Norra Timber
Mob: +46 (0)70-628 80 08

Key stages in the merger process

Intensive work is under way to identify the best possible way of uniting the two operations. The plan is to decentralise the forest operations, creating three geographic hubs: Luleå, Umeå and Östersund, with the association’s head office located in Umeå.

Key stages in the process: 

1. Dialogue with elected representatives
2. Negotiations with trade unions under the Swedish Co-determination at Work Act (MBL)
3. Application to the Swedish Competition Authority and the Swedish Companies Registration Office 

In October, a notification of concentration will be lodged with the Swedish Competition Authority and a merger plan will be submitted to the Swedish Companies Registration Office. If at their Extraordinary General Meetings, the members decide to approve the boards’ proposal to form a joint association, the merger between Norrskog and Norra will be established once the Swedish Companies Registration Office has given us its response. The preliminary date for this is the end of April 2020.

Flow chart


Sep
Information about merger issued under MBL

Sep-Oct
Application to Competition Authority and Companies Registration Office

Nov-Dec
Dialogue with elected representatives
Ruling from Competition Authority

7-9 and 13 Jan
Information meetings for all members

7 Feb
EGM for both Norrskog and Norra

End of April

Decision from Companies Registration Office

30 April
Merger takes place if no obstacles have arisen