Two weeks after saying it would definitely extend its summer mill shutdown due to poor construction timber demand, Södra Timber has reversed its decision. As the situaiton stands, the plan is now to close only for the ususal summer break.
Södra Timber outgoing chief executive and Peter Nilsson president had said that the company’s Ramkvilla and Torsås mills would stop production from June 4 to August 27, while the Långasjö mill would go from three shifts to two. He said the company needed to “create a balance between production and demand”..
But acting chief executive Håkan Svensson said the company had changed its mind due to low standing stocks “at a local level” and the need to increase sawn stocks of particular ranges.
“As a result we will be evaluating the situation in early June and deciding how we will restart the sawmills after the summer break,” he said.
Mr Svensson, however, cautioned that demand remained weak in many of the company’s markets and it still could not rule out extending the summer shutdown into August at some mills.
