Scandinavian timber giants UPM-Kymmene, Finnforest and Stora Enso are slashing sawmill production because of difficult market conditions.
Kari Anttilainen, managing director of UPM’s sawmilling arm United Sawmills, said the company’s nine mills would cut back by 20% over August, September and October.
He said: ‘The reason is sawmilling is such an unprofitable business at the moment.
‘Prices are too low and raw materials prices are high. All the Finnish sawmills are suffering.
‘It’s no use producing timber at the level we are doing currently. It’s nonsense.’
Mr Anttilainen hinted that if things did not improve, further cuts could be made.
Tapio Pirinen, managing director of the firm’s UK operation, UPM-Kymmene Wood Ltd based at Hemel Hempstead, said: ‘If you cut production by 20% it is not business as normal but for our main customers we hope it will be so.’
Output at Finnforest’s 12 sawmills will be reduced by 140,000m³ for the next six months (a cutback of 12% on the same period last year).
It said a sharp fall in sales prices and a moderate oversupply of softwood had necessitated the cut.
Finnforest UK‘s managing director John Tong foresees no supply problems as the com-pany buys against customer needs and has weekly shipments. ‘We are well supported by existing suppliers,’ he added.
Stora Enso, Europe’s biggest sawmilling group, is reducing output by 75,000m³, with the biggest cuts (10%) at its Swedish mills.
