The Swedish forestry group said its decision was based on differences of opinion between itself and Skld regarding the company's strategies.

Director of forestry Gunnar Olofsson will take on the role of acting president.

According to his employment contract Skld is entitled to receive a year's salary in lieu of notice, and severance pay equivalent to a further year's wages.

The total cost to Sveaskog including pension costs is 558,000 (SKr7.5m).

Sveaskog is wholly owned by the Swedish state, with just over 2,000 employees and a turnover of approximately 594m.

Companies within the group include AssiDomn Timber and Frvi, and the Swedish Forest Industries Federation.