Sawn softwood production in member countries of the European Organisation of the Sawmilling Industry (EOS) is predicted to reduce by 16.8% this year.

At the EOS general assembly in Bucharest, members heard that the decline follows a 7.5% production fall to below 84 million m³ in 2008.

The biggest declines in production this year are expected in Austria, Germany, Finland, Latvia and Sweden.

“For the year 2010, the outlook is slightly better again, though the expected pick-up of production is still very modest compared to the volumes reached previously,” the EOS said.

“A permanent impact on the sawmilling companies can, therefore, not be excluded and is more than likely.”

Germany retained its status as largest sawn softwood producer in the EOS community with a 26.3% share (22 million m³), followed by Sweden with 20.9% (17.5 million m³) and Austria on 12.7% (10.6 million m³).

Consumption is predicted to fall 15% this year, following a 6% dip in 2008, ending slightly below 50 million m³.

Hardwood production is forecast to reduce by 13% this year to 6.5 million m³.