Kalmar keeps a Swedish sawmill running with a comprehensive service contract

Kalmar Industries, part of Cargotec Corporation, and SCA Timber, Sweden's premier lumber producer, recently entered into a far-reaching agreement which includes the provision of service and maintenance for several machines, including forklifts, logstackers and wheel-mounted loaders, as well as approximately 25 equipment operators at SCA Timber's Tunadal operations.

The move further emphasises Kalmar's commitment to providing total material handling solutions which require all-encompassing resources - from the parts and labour extending all the way to the supply of drivers.

Sten-Arne Sjöberg, Regional Manager, Kalmar Sweden, comments on this agreement and the growing popularity of companies seeking to out-source their operations:

"Our comprehensive approach, which means we assume responsibility for SCA Timber's machines, maintenance programme and drivers, will allow the customer to focus on its core business of wood processing.

"In Northern Europe, Kalmar Sweden has signed several similar contracts with forest and lumber companies, proving the value of this type of close customer collaboration."

Kalmar's remuneration will be based on the productivity levels realised by SCA Timber's Tunadal operations. This agreement will ensure that the sawmill runs as efficiently as possible by means of a cost effective approach and an uninterrupted operation with high production flow.

Jerry Larsson, Tunadal Sawmill Manager, SCA Timber, explains that Kalmar's on site staff is responsible for all internal transportation, including the loading and unloading of materials during the product processing phase as well as in preparation for shipping.

"This is a major and all-inclusive agreement, of which SCA has also put into practice at several of its locations where the collaboration with contractors is also working well. From our experience, it's of prime importance that the payment level be based on the production volumes our operation achieves," Larsson adds.

Up to 20 machines under Kalmar's supervision

To realize the promised efficiency levels, Kalmar will bring three new Kalmar RTD 1623 logstackers into operation as well as one used unit. Also for the timber sorting area, Kalmar will maintain and operate five other-branded wheel-mounted loaders with load ratings of up to 30 tonnes. In the timber yard, eight Kalmar DCE 150-12 forklifts with 15-tonne capacities will work along side a 12-tonne wheel loader of another make.

Sjöberg describes the daily operations at the Tunadal facility:

"Kalmar's operators are responsible for the plant's entire logistics scheme. They unload the timber vehicles and make sure the timber is sorted and warehoused. The work also requires drivers to feed timber into and lift it from the saws as well as place product into and remove it from the driers, trimmers and planing machines. The timber is then finally loaded onto boats and lorries."

A market leader in Europe

SCA Timber is one of the largest sawmill companies in Europe offering a broad range of high-quality solid-wood products. Its operations include eight sawmills and six planing mills located in northern Sweden. SCA Timber's total production of solid-wood products amounts to 1.8 million cubic metres per annum.

Last year, SCA Timber's Tunadal operation produced 335,000 sq m of sawn wood products. The facility employs approximately 155 people, including the operators from Kalmar. In the past two years, the Tunadal plant has invested close to SEK 100 million in modern drying equipment; an important phase in developing the plant into one of Europe's best spruce sawmills. Next year, SCA Timber plans to further upgrade its Tunadal operations with the implementation of a new SEK 210 million trimmer.

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Notes to editor:

Press information can be found on Kalmar's website: www.kalmarind.com. Simply click on News Room to be taken to a list of recent press releases. A photograph to accompany this release is also available on the Kalmar website, by clicking on Press Pictures. The caption for the photograph reads:

"Sweden's premier lumber producer SCA Timber turned to Kalmar for total material handling solutions in an agreement which will see the provision of service and maintenance for several machines, including forklifts, logstackers and wheel-mounted loaders as well as approximately 25 equipment operators, at its Tunadal sawmill. To ensure promised efficiency levels, Kalmar will deploy three new Kalmar RTD 1623 logstackers (pictured)."

Kalmar is a global provider of container and heavy duty materials handling equipment, automation applications and related services. It is the world's leading supplier of cargo handling equipment to ports, terminals and intermodal facilities.

Every fourth container or trailer transfer at terminals around the world is handled by a Kalmar machine. The company also supplies a wide range of machines to demanding industrial customers for applications as diverse as handling steel and paper to shunting road trailers at distribution hubs.

Kalmar is also leading the way in port automation applications with its application of unmanned container handling technology, on-board smart features and remote maintenance products developed in co-operation with customers and partners.

Kalmar's product range is complemented by a large range of value added services such as maintenance contracts and fleet management. Production plants are situated in Sweden, Finland, the Netherlands, Malaysia, China and the USA. Kalmar's net sales were EUR 1.343 billion in 2007.

Kalmar is part of Cargotec Corporation, the world's leading provider of cargo handling solutions, which are used in local transportation, terminals, ports, distribution centres, and ships. In 2007, Cargotec's net sales were EUR 3.018 billion. Cargotec's class B shares are listed on the Helsinki Stock Exchange.