A major Canadian wood products company is expanding further into Europe with a new investment in Sweden. Vancouver-based Canfor Corporation is growing its presence in Central Sweden through a deal by its Swedish subsidiary, Vida AB.
The $164 million deal will see Vida acquire AB Karl Hedin Sågverk, a sawmill and wood products company with three sites in the region. The purchase agreement was announced on Tuesday and marks a key step in Canfor’s global expansion strategy.
According to Canfor, the acquisition will increase Vida’s annual wood production by about 230 million board feet. Once the deal is complete, Vida’s total yearly output will reach around 2.1 billion board feet.
Canfor owns 77 percent of Vida AB, which is based in Sweden and produces a wide range of wood products for both local and international markets.
Company leaders say the deal strengthens Vida’s reach and supply chain in Central Sweden, an area known for its top-quality timber. Canfor’s CEO Susan Yurkovich said in a statement that the acquisition adds value to Vida’s current operations.
“This strategic acquisition will enhance Vida’s strong operating platform and provide further diversification into Central Sweden,” said Yurkovich.
She also noted that the region offers high-quality raw materials that will support Vida’s line of premium wood products. The new sawmills are expected to blend well with the company’s existing output.
The purchase is being made from Mattsbo Såg AB and a group of minority shareholders. The final deal is still subject to regulatory approvals and other standard conditions. Canfor expects the transaction to close in the coming months.
In addition to increasing production, the company also expects to save around $15 million over the next three years. These savings will mainly come from better alignment in marketing, timber sourcing, and operational efficiency between the old and new sites.
The move is part of a long-term plan by Canfor to expand in key global markets. With the addition of these Swedish sawmills, the company improves its access to the European timber market and strengthens its overall supply chain.
This expansion is also in line with the rising global demand for sustainable and high-quality wood products. With limited forest resources in some areas, access to well-managed and productive forests in Sweden provides a strong advantage.
The deal shows Canfor’s focus on building a solid foundation in Europe while supporting its North American operations. It also highlights the company’s plan to grow through both organic development and strategic acquisitions.
AB Karl Hedin Sågverk is well known in Central Sweden for its strong operations and consistent output. The firm’s three sawmills are located in areas with reliable timber supplies and a skilled workforce.
Once integrated, the new facilities will help Vida meet growing customer demand in Europe and beyond. Canfor believes the combination of strong local resources and its global expertise will create long-term value for both companies.
