Finnish production grows

Finnish forestry industry production has recovered both from the recession and the structural changes but mills’ international competitiveness will largely be decided by policy decisions in the forthcoming Programme for Government, according to the Finnish Forest Industries Federation (FFIF).

“Amending the energy tax refund mechanism, improving the availability of wood, considering the combined effects of taxes and subsidies that promote the energy utilisation of wood as well as paying attention to the state of the transport network will have a substantial impact on the future success of the forest industry. All of these issues are influenced through domestic decisions,” said FFIF director-general Timo Jaatinen.

He added that it was important that a solution to the current labour dispute with salaried paper industry employees was reached quickly.

“We should hold on to all of our industrial jobs, and not drive them out of the country through our own actions – even if a labour market dispute is involved. The employer side remains prepared to offer salaried employees a pay solution that in amount and form matches those agreed to with other paper industry personnel groups,” said Mr Jaatinen.

In the first quarter Finnish sawn timber production totalled 2.4 million m³, up 1% from the corresponding period of 2010. Plywood production increased by 20%. Livelier construction activity, especially in the industrial and commercial building segment, has also contributed to an increase in demand for joinery products.

The value of the first quarter’s forest industry production is estimated to be nearly €5bn – an increase of around 5% on the corresponding period of 2010.

The industry did not manage to procure sufficient quantities of wood in January-March to satisfy quarterly needs, and had to use stockpiled reserves. The FFIF said demand was strengthening and more timber would be needed to for the remainder of the year.