Kährs Expanding Plant in Sweden

Nybro, Sweden, Sept. 9, 2008--Wood flooring manufacturer Kährs is investing $14.8 million at its Nybro factory in Sweden but will also lay off about 245 employees because of weak market conditions, Timber Industry Magazine reported.

The steps are outlined in Kährs’ new business plan, which has been approved by the board of parent company Nybron Flooring International (NFI). Kährs has also secured an interest payment grac3e period from lenders.

Kährs said it was convinced of the long-term growth and profit potential of the wood floors market, but expected continuous price and volume pressure in the near future.

The business plan outlines cutting a quarter of jobs at the Nybro factory, extending the product portfolio, increased marketing where there is growth potential (including emerging markets) and extended co-operation with external suppliers.

The investment at Nybro, intended to make the plant into the world’s most effective wood floor factory, is designed to improve production flow and efficiency.