The general assembly of the European Organisation of the Sawmill Industry (EOS) on June 15 heard that higher output was being driven mainly by increased capacity at European mills, especially in Germany.

With further capacity increases scheduled for 2007-2008, output is expected to grow to 5.4% this year.

EOS said the downside was that availability of wood would become more crucial in the years to come. And this was against a background of increased prices and supply problems in some European countries.

Consumption of sawn softwood grew 3.6% last year to 69 million m³ in the EOS region.

Sawn hardwood production rose by 0.8% to more than 8.3 million m³, but forecasts are more optimistic for 2007, with a 3% increase predicted. Consumption remained stable at 8.5 million m³.

EOS members heard that demand was strongly linked to interest in temperate hardwood by the furniture, flooring and construction industries, with a 4.4% growth in consumption expected in 2007. Oak is benefiting the most, as the species makes up about 50% of hardwood flooring in Europe.

Beech is showing some signs of improvement due to high demand in the Middle East.