Nordic sawmill curtailments continue
6 November 2019Nordic sawmillers have reported weaker results and curtailment of production to manage lower prices, oversupply and weakening demand amid a background of uncertain global economic conditions.
Spruce beetle infestation is also resulting in large amounts of material on the market.
During the autumn and winter, Bergs Timber will reduce its Swedish sawmill production by about 35,000m3 – 4% of annual group production.
Stora Enso will consolidate its Finnish spruce timber production at its Varkaus mill and the Kitee sawmill will be closed.
Moelven will shut its Moelven Eidsvold Værk AS planing and sawmill in Q1, 2020, while activities will reduce at Moelven Loten AS by moving production of standard goods to Moelven Våler AS.
Setra reported a SEK22m operating loss in Q3 due to lower sales prices, higher wood prices and lower production volumes.
Stora Enso’s Q3 operational earnings before interest and tax fell €21m to €27m. SCA’s wood products division saw Q3 EBITDA reduce 35% to SEK180m (Q3 2018: SEK276m) and Moelven’s Q3 operating profits were NOK43.6m – down by NOK86m from a year ago.
However, Metsä Wood recorded a profit improvement in Q3 with a €2m increase in EBITDA to €8m.
