Jarl Timber will reduce its production from two shifts to one from August 1 because raw material prices have outpaced sawn and planed timber selling prices.
Kjell Gabrielsson, managing director at Jarl Timber, said the Swedish mill in Broakulla had been forced to adjust production to sustainable raw material availability in the region.
About half of Jarl’s 60 employees will be made redundant.
Jarl Timber produces about 130,000m³ of spruce and pine timber annually to Europe and North Africa, with the UK being its single largest market.
“We have looked at all possible alternatives but unfortunately the cut in production and redundancies is inevitable,” said Sampsa Auvinen, CEO of Norvik Timber Industries, the parent company of Jarl Timber.
