SCA and Södra to cut timber production

SCA Timber is curtailing sawmill production by 10% for the rest of the year.

Most of the production limitation is connected with the Christmas and New Year holidays.

“We are reducing production in order to avoid building inventory,” said chief executive Jonas Mårtensson.

“Demand has not fallen. However, production has increased more, in particular in Finland and Sweden, than what the market has been able to receive.

“We therefore choose to reduce production in order to reach a range that is in balance with demand.”

SCA Timber has a production capacity of approximately 2.2 million m3 of sawn spruce and pine, including the production of associated Gällö Timber.

SCA Timber has around 800 employees.

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Södra Timber will be limiting production at two sawmills for one week this autumn and at a number of sawmills over the Christmas and New Year break.
"Demand for timber products has fallen, and we have profitability problems. Production capacity must be adapted to fit in with this reduced demand so that we can create the conditions for a price level which will improve our margins," said Peter Nilsson, CEO of Södra Timber.
Södra Timber has decided to shut down production at Långasjö and Ramkvilla in week 44. Kinda, Unnefors, Ramkvilla, Orrefors, Torsås and Långasjö will also be stopping production between 23 December and 9 January. It is estimated that this will reduce production by a total of around 40,000 cubic metres of product. Staff will be offered holiday during these periods.
"These measures will allow us to start the year with balanced stocks, something we must have if we are to see a better market for timber products," said Peter Nilsson.