The role of the sawmill in a changing world

In Bollstabruk, some 30 kilometres northwest of the High Coast Bridge in the estuary where the Ångerman River meets the sea, stands the Bollsta Sawmill. It has stood there for well over a hundred years, a hub for timber processing and a symbol of a community that was born and has grown thanks to the forest. It was built in the nineteenth century from the same raw material that today is the foundation and future of the town. The sawmill is more than simply a place of work – it is the lifeblood of a town of over 1,000 inhabitants.

It is December and snow blankets the landscape. Steam from the timber-drying kilns rises into the cold sky creating sculptural formations, while the air is filled with the familiar 
scent of freshly sawn wood. The sawmill is a place where activity never ceases. Timber trucks enter the gates one after the other and, in the harbour a little further into the sawmill area, a vessel is moored. Over recent days, work has been ongoing almost around the clock to load 2,200 packets of wood bound for Morocco.

“The sawmill is the hub of our operation,” says Jerry Larsson, President at SCA Wood, as he surveys the sawmill.

Jerry is responsible for SCA’s five sawmills, which in many ways are the engine driving the 
forest industry ecosystem the company has developed during its almost 100 years in business.

Having refined the art of creating value from the forest, the company is now taking on a key role in the green transition alongside the rest of the forest industry. With its renewable raw material and unique ability to store carbon in its timber products, SCAWood offers an obvious and sustainable solution for reducing carbon footprints – both in Sweden and globally.

“Wood has been a key to prosperity for centuries and, naturally, our ambition is to continue contributing to this in future. For us, it’s self-evident that wood is one of the materials of the future,” says Jerry.

Global demand creates local value

And it certainly is self-evident; since the start of the twenty-first century, demand for sawn timber products has increased by almost 2 per cent annually, a development driven by both economic growth and the need for more housing. Nor is there any sign of this trend slowing down. On the contrary, stricter requirements for sustainable building are expected to further strengthen the competitiveness of wood as a building material.

“If urbanisation continues, the need for homes in metropolitan areas will naturally increase. However, given how crowded these cities already are, both above and below ground, regional enlargement will be required to meet this need,” continues Jerry.

It is precisely there, in the expansion of new residential areas, that wood clearly has a role to play. He believes that, when it comes to four- to eight-storey apartment buildings, wood is one of the most economic and sustainable alternatives.

However, it is not only the forest industry that is hoping for a continued increase in demand. According to Jerry, what sets the forest industry – and especially sawmills – apart is its strong association with regional value chains.

“We are largely self-sufficient. Apart from certain machinery components and fuel, we are not dependent on imports. This means that enormous value is both created and remains locally,” he says.

The value chain as described by Jerry is simple but powerful: the timber is purchased from local owners, timber is transported to the sawmill by local contractors, and the raw material is processed by people who live and work in the same region. Even the plastic that wraps and protects timber packets is now manufactured in close proximity to the sawmills. In other words, this is a value chain that not only strengthens the sawmill but also local businesses.

A recent report on the significance of the forest industry for northern Sweden commissioned by SCA demonstrates that, in 2024, the wood products and paper industries in central and northern Norrland generated almost SEK 2 billion in municipal and regional tax revenue. In addition to the wood and paper products industry employing almost 11,000 people, the industry is also estimated to indirectly contribute to an additional 8,000 jobs through its need for local services.

“It’s no secret that many municipalities are highly dependent on our operations. In many places we are the largest employer and, were we to disappear, it would quickly have major consequences,” says Jerry.

A polished operation thanks to sawmills

One of the many local business that has grown thanks to the sawmill industry is Sollefteå 
Slipservice. A business that started in a garage in Sollefteå in the 1980s has developed into a highly specialised operation with 18 employees and an annual turnover of around SEK 30 million.

“My father-in-law’s first sawmill customer was Graninge Bruk. Thanks to their business, he was able to employ his first employee and build a 200 square metre workshop,” explains Peter Oremo, CEO of Sollefteå Slipservice.

Today, the workshop is four times the size and collaboration with sawmills has been crucial to the company’s growth. When Tunadal Sawmill upgraded its saw line, Sollefteå Slipservice followed suit, investing around SEK 15 million in new machines to keep pace.

“We have robots working around the clock and, together with the sawmills, we are constantly developing new tools to make production even more efficient. Having SCA as a partner also allows us to work with some of the best tool manufacturers in the world,” says Peter.

While the company now has customers all over Sweden, the region’s sawmills are still the foundation of the business. The downsizing or closure of SCA’s sawmills would have immediate consequences.

“Were SCA to decrease or cease operations, we would need to lay off at least half of our workforce. That’s not something we like to think about, but it’s a fact,” he says.

For Sollefteå Slipservice, the sawmills are more than just customers – they are a prerequisite for the company’s existence. If the sawmills were to vanish, it would have dire consequences not only for Sollefteå Slipservice but also for the entire network of suppliers and specialist companies that has grown up around the forest industry.

Fierce competition keeps sawmills sharp

The sawmill in Bollstabruk is still a hive of activity, even though the dock is now still after 
days of intensive work. The only trace left of the 135-metre-long cargo vessel Merweborg is the path carved through the ice, which leads the eye towards the sea – a conspicuous reminder of how the port connects the local to the global.

A comparison of sawmill maps from 2002 and today reveals an obvious development: fewer sawmills concentrated around locations with good access to maritime transport. In just over 20 years, the number of sawmills located in the regions where SCA operates has declined from 43 to 27. The ones that remain are those with the best conditions for reaching out into the world.

“If we look at the sawmills that have survived – especially in northern Sweden – we can see an obvious trend. These days, close proximity to a port is crucial. Just as rivers were once essential for rafting timber, so maritime transport is now crucial to competitive exports,” explains Jerry.

For SCA too, this development has been tangible. During the same period, the number of sawmills operated by the group has more than halved from eleven to five, a development that has demanded adaption but also opened up new opportunities. To meet future needs, SCA has invested in streamlining and modernising its sawmills. Investments in new technology and increased production capacity have left SCA’s sawmills stronger and today they account for over 50 per cent of the total production of sawn timber products in northern Sweden.

“Competition for raw materials is fierce but, with healthy investment in our sawmills, we see further opportunities going forward. By continuing to work closely with forest owners, the business community, local politicians and communities, we can create the right conditions to continue creating value locally and globally in future,” concludes Jerry.