The Icelandic owner of a string of timber companies across Europe, including in the UK, has shrugged off the financial maelstrom enfolding the country and says it is well capitalised for the future.
Jón Helgi Gudmundsson, CEO of Norvik hf, told TTJ its European sawmill and merchant operations were served by banks in their country of operation and not the troubled Icelandic banking giants Landsbanki, which is in administration, and Kaupthing which has been nationalised.
Westerham-based Continental Wood Products and subsidiary Wayland Timber, of Creeksea, are both part of Reykjavik-based Norvik, which also owns Latvian sawmills including the Vika mill, the Swedish mill Jarl Trae in Sweden and EWP in Estonia.
“We have a very strong and liquid position in general ,” said Mr Gudmundsson. “Our timber companies are not hit by this but by general developments in timber markets. They are doing well and we are seeing supply and demand in balance and price increases.
“The domestic Norvik business is financed by the local banks [in Iceland]. Before the crisis we were well long-term financed and are therefore not hit by the banking crisis in Iceland in the short or medium term. In the long term, there will surely be working banks in Iceland.”
But he expressed anger at the actions of the British government seizing the assets of Kaupthing in the UK using anti-terrorism laws – a move which is blamed in Iceland for bringing down the bank.
Norvik employs 3,000 people and has a turnover in excess of US$500m.
