Brief: Bergs Closes Sawmill In Estonia

Bergs Timber AB (publ)

25/07/2023 12:33

July 25 (Reuters) - Bergs Timber AB (publ)  BRGb.ST :
    * BERGS CLOSES THE SAWMILL IN ESTONIA
    * TO CLOSE SAWMILL IN ESTONIA THAT IS OPERATED IN SUBSIDIARY
LAESTI
    * BACKGROUND IS WEAK PROFITABILITY, HIGH PRODUCTION COSTS
AND
LARGE FUTURE INVESTMENT NEEDS
    * CLOSURE AFFECTS ABOUT 30 EMPLOYEES
    * SAWING OPERATIONS WILL CEASE IN AUGUST AND THAT ENTIRE
OPERATION
WILL BE PHASED OUT IN AUTUMN OF 2023
    * A LETTER OF INTENT HAS BEEN SIGNED WITH ESTONIAN COMPANY
WARMESTON OÜ FOR SALE OF LAND, BUILDINGS AND MACHINERY AND
TRANSACTON IS EXPECTED TO BE COMPLETED IN Q3 OF 2023
    * PROPOSED NEW OWNER DOES NOT PLAN TO OPERATE SAWMILL
    * CLOSURE HAVE AFFECTED RESULT FOR Q2 OF 2023 WITH SEK 40
MILLION
FOR IMPAIRMENT OF FIXED ASSETS AND CLOSURE COSTS
    * CASH FLOW IS ESTIMATED TO BE POSITIVELY AFFECTED BY
APPROXIMATELY SEK 70 MILLION WHEN DISCONTINUATION OF OPERATIONS
IS COMPLETED

Source text for Eikon:  ID:nMFN51KBgL 
Further company coverage:  BRGb.ST 

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