Five sawmills in Jämtland province, central Sweden, have reached an SEK 100 Million agreement to supply hardwood and semi finished wood products to a Thai company.
“The customer is a large Thai company in the process to set up a construction material department store and they focus mainly on builders of apartment and hotel projects,” says Mr Ulf Edström, Executive Director of the Swedish Thai Chamber of Commerce, STCC to local newspaper ÖP.
The Thai client will purchase 10 000 cubic meters wood products at a value of SEK 20 Million per year for a five year period. It is a consortium called Swedish Timber Group, STG – originally set up as a sales channel for Swedish sawmills, that has signed the contract.
“Competition is tough from New Zealand, Finland and other countries already selling large quantities to South East Asia. We are not the cheapest but we sell on quality,” says Mr Olle Wiklund who has done most of the sales work in Thailand.
The Thais are very interested in processed and impregnated wooden products that are less prone to attacks by termites and other wood loving insects common in Thailand, as well as the different look, feel and usage opportunities for Swedish wood products.
