The southern Swedish timber sector has historically seen itself as a coherent group with shared strategic interests thanks to the nature of its raw material and proximity to key export markets. As a result, in 1936 it formed the South Swedish Timber Exporters Group (SST).

Today that regional identity persists, and the SST continues to develop as its markets evolve. In 2013 it added a further three companies, and this autumn is set to become increasingly outward facing with the launch of a new website.

The SST’s core role is sharing market information, intelligence and best practice among members, culminating in an annual Market Day in Växjo in October.

Following last year’s additions, it now has 60 members, covering the range of timber and associated businesses; saw and planing mills, timber treatment specialists, wholesalers, shipping brokers and port operators.

A large proportion of timber producer members are in the 20,000-100,000m³ capacity bracket, although we include bigger players too, such as Södra, ATA, Rörvik and Holmen. Combined annual output is 6.5 million m³.

Our location means our key export markets are Germany, the Netherlands and Denmark, and, of course, the UK. The latter remains the biggest single foreign market for the Swedish industry overall. Sweden, in turn, accounts for 50% of UK softwood imports and our members see the market having dynamic prospects for further growth and development. It provides opportunities for a wide variety of our products, which range from C24 carcassing, battens and finger-jointed sections, through decking, cladding, and timber frame material to DIY and garden products. The UK economy is also clearly improving and government measures to boost construction are succeeding.

At the same time, our members are diversifying their markets. Poland, India and China may still account for relatively small volumes, but they are growing. The Middle East is also seen as an under-explored opportunity and North Africa, which is already important, has potential for further growth, especially Egypt.

Overall our member companies are looking at a recovering market, with conditions generally improving from the last quarter of 2013 into the first quarter of this year. A mild winter and sufficient log supply have resulted in increased output and, despite tighter margins as a result of firming log prices and a decline in residue sales income, the outlook is positive.

Our domestic market is also growing thanks to increased activity in construction and the repair and maintenance sectors.

Investment is under way at member mills, focused mainly on yield and productivity, and especially in the areas of grading, sorting and further added value, with most of their output now at least planed.

With only 50% of log volume destined for sawn timber, our members are also major fibre suppliers to pulp, paper and biomass energy markets. With Sweden now deriving 50% of its energy from renewables, the wood energy sector has been growing, despite a dip in demand for residues as a result of the mild winter, and mills are also focused on optimising this business.