The company said weaker performances in its wood building products division, laminated timber business and building module operation in Sweden contributed to the loss, as well as costs associated with commissioning a new production plant.

“The market balance for the timber division’s sawmills is improving,” said Moelven CEO Hans Rindal.

“Demand has marginally improved in certain markets, while production and storage levels of industrial timber have reduced,” he said. This, combined with changing currency conditions, has led to better earnings for the sawmills.

“At the same time, we can see that access to raw materials for our timber-consuming units and sales opportunities for chip products have been satisfactory.”

Mr Rindal said Moelven had come through a period of heavy investment and was now able to reduce investment levels considerably over the coming months and concentrate fully on effective operation.

Moleven is also looking at a “number of measures” to improve results, as well as a project to liberate working capital.