The Swedish sawmiller explained its decision by predicting demand for sawn timber would be at a low level for a long time, with the upcoming winter period "tough".

"It does not make sense to buy expensive raw material, cut it and then sell it at a loss," said CEO Per Rodert.

"A further reduction in the price of raw material to the levels of central Sweden is required for sawmills in our area to achieve profitability."

The cutbacks affect all sawmills except for Linghem.