The Swedish company said it expected world demand for sawn timber would remain low for "a long time" and this, coupled with the strong dollar, meant the price would not cover the high marginal cost of raw material.
"It does not make sense to buy expensive raw material, cut it and then sell it at a loss. We have therefore taken the decision to cut back production in Tvärskog. We believe that the measure will improve the performance of the sawmill," said CEO Per Rodert.
He warned: "A further lowering of commodity price levels in the middle of Sweden is needed for sawmills in our area to reach profitability."
