Kuhmo Oy has cut production at its Finland sawmill to adjust to the current overstocking in the market.
Marketing director Juha Virta said: “If there is a time when bad news could mean a good outcome, I think this is one – especially if more companies would think the same and take action.”
Kuhmo production has been reduced by around 30%, with two shifts being worked instead of three.
The reduction started in week 13 and will continue until the situation improves. Mr Virta said: “This will mean an overall reduction in production and stocks but will hopefully not affect existing contracts.”
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“If there is a time when bad news could mean a good outcome, I think this is one – especially if more companies would think the same and take action” |
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Kuhmo marketing director Juha Virta |
He said building of excess stock going into summer and warm weather will mean increased problems with damage to timber through discolouration, shakes and weathering. “It is a case of weighing up the pluses and minuses. Stock levels cannot increase forever because it becomes impossible to store everything under cover.
“We are trying to avoid the situation where we can’t deliver.”
Mr Virta said that Finland and Sweden jointly produce some 30 million m3 a year, adding that if everyone cut production by 30% for one month it would bring balance back on the market.
