Sweden's boom time continues

Summary

• Sawn timber prices have risen by 2%.
• Germany has overtaken Sweden as Europe’s largest producer of sawn timber.
• Sweden’s furniture industry recorded its best sales during the first quarter.
• Storms have hampered replanting.

The boom is continuing for the Swedish forest industry. This is exemplified by the results being announced by a number of major companies: Mellanskog, Norra Skogsägarna, SCA, Södra and Sveaskog have all produced good results.

These results have been achieved despite the effects of Hurricane Per which struck the south of Sweden in January this year and felled at least 12 million m³ of forest. Södra alone has had to process 7.6 million m³ – up from an initial estimate of 5.2 million m³. This was a heavy blow after the devastation caused by Hurricane Gudrun in January 2005.

Demand for Swedish timber is good and production levels are high. The strong market has also resulted in a price increase of 2% for sawn timber in the first quarter of this year alone. Despite this, Skogssällskapet, a Swedish organisation that administers forests for both public and private clients, has suggested that Sweden has the lowest prices for timber in the whole of the Baltic area, even though there is competition for timber for use as biofuel and areas being set aside nature conservation. According to Bertil Stener of Skogsindustrierna (The Swedish Forest Industries Federation) almost 20% of forest area in Sweden will be protected by 2010 and an increase in the areas set aside has been proposed by Skogsstyrelsen (The Swedish Forest Agency) – an increase which Skogsindustrierna strongly opposes.

Skogsindustrierna has also pointed out that Germany has now taken over from Sweden as the largest producer of sawn timber in Europe, producing 23 million m³ last year compared with Sweden’s 18 million m³. Furthermore, several new sawmills are being commissioned in Germany which will increase the country’s capacity by a further 5 million m³ by 2009. “At present the German expansion does not affect us in Sweden,” said Bertil Stener. “Demand is so strong that we can all be accommodated on the market. But we will have to wait and see what happens later.”

The Swedish furniture industry had its best sales ever during the first quarter of this year according to statistics from TMF, the trade organisation for companies working in the wood processing industry. Both domestic and export sales increased with the export of furniture increasing by 10% to SKr3.8bn, the largest export markets being the UK and Germany.

The recent storms have meant that forest owners have had difficulty planting sufficient trees to replace those that have been lost. After years of increases in the number of trees planted, the country has now seen a reduction from 84% to 83%. “The positive trend for replanting in the country seems to have be broken and this is clearly worrying,” said Jonas Bergquist of Skogsstyrelsen. “Forest owners have had great difficulty in replanting after the storms in southern Sweden and that will probably mean additional reductions in the coming years.”

Sveaskog is introducing modern technology and better working methods to increase productivity in their forestry. “Improving productivity by 3-4% a year is necessary if we are to maintain and develop forest value,” said production manager Sven-Erik Gustavsson.

Among these measures are four new machines the company is introducing in its operations: a unit, which is fitted to existing equipment on a harvester, that can hold several tree trunks at the same time when felling in young forest; a driverless harvester that provides a better working environment for the operators, financial savings and environmental benefits by reducing damage to the forest floor; a system of crane end control which should allow forest machines to be automated; and the El-Forest forwarder that is partially powered by batteries and that can reduce its own fuel consumption by up to 25%.

All 203 entries for Träpriset 2008, an award that is presented every fourth year to a structure that represents good Swedish architecture in wood and reflects the times we live in, have been posted on the Swedish language website of Skogsindustrierna. The entries are grouped under houses and summer houses, other dwellings, public buildings, civil engineering, smaller buildings and other structures. Among the entries are three bridges that Martinsons have entered and Södra’s head office. The jury will nominate 10 entries for final selection in November from which the winner will be chosen and announced in April 2008.

The Träpriset entries can be viewed at www.skogsindustrierna.org/trapriset.