Sweden: Co-operation procedure at Viking Malt Söderhamn has ended
Viking Malt announced on May 25 that co-operation procedure and negotiations at Viking Malt’s malting house in Söderhamn, Sweden have ended. The malting house will be closed and 19 persons have been given notice to quit. The close down will be completed during autumn 2005.
The malting house in Söderhamn was established in 1972 and it has delivered malt to the Swedish breweries and exported malt to Norway, Russia and Scotland.
Conditions for economic business activities of the malting house have decreased due to the difficult situation on the malt market, specially in the Swedish brewing sector, and in the most important export countries, says Bengt Ohlsson, Managing Director of Viking Malt.
Beer production in Sweden has decreased during the last 10 years due to private import of “low-priced beer”. In 1995 beer production was 5.5 million hectolitres, but only 4.2 million hectolitres in 2003. In addition, possibilities to export to Russia have diminished remarkably, where western malt is being replaced by own production.
In the current market situation Viking Malt can respond to the malt demand by its remaining, production efficient malting houses and production units suitable for special malt production, says Katharina Stenholm, Chairman of the Board of Viking Malt.
Viking Malt has four malting houses in three countries: in Sweden (Halmstad and Söderhamn), in Lithuania (Panevezys) and in Finland (Lahti). The maltings in Halmstad and Panevezys started production in 1997 and in 2004.
The ownership of Viking Malt Oy is divided between Polttimo Companies in Finland (62.5 %) and Svenska Lantmännen (Swedish Farmers) in Sweden (37.5 %).
Viking Malt delivers malt to its home market and to Russia, Venezuela, Norway, Denmark, Latvia and Estonia.
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