Norwegian timber giant Moelven Industrier ASA is considering closing two of its sawmills.
The possible closure of Moelven Romedal and Moelven Knappåssågen follows publication of its second quarter financial results which show a poor outlook for profits.
The company blames over-production of industrial timber in the Nordic countries, shortage of local timber at competitive prices and the increasing cost of importing to Norway and Sweden.
Operating revenue for the timber division during the second quarter was NKr880m, with operating profits of NKr21.8m.
Moelven has reduced production as weak demand and low prices for timber continue.
Finnforest recently acquired a majority shareholding in Moelven (TTJ August 4), creating Europe’s largest player in the mechanical forest products sector.
