The European sawmill industry saw steady progress in 2004 but the forecast for 2005 is lower than expected, delegates at the European Organisation of the Sawmill Industry (EOS) heard recently.

The EOS softwood sector performed well in 2004 with a production growth of 2.6% on the previous year but softwood production is expected to slow during 2005. However, softwood consumption rose vigorously in 2004, showing an increase of 6.6% on the previous year. EOS members forecast a more modest increase of 1% in 2005, in line with production forecasts.

The European hardwood sawmilling sector in still struggling, although members could report a positive result for the first time since 2001, with an increase of 5.7% on last year.

Hardwood production is forecast to slow, while hardwood consumption continued to plummet in EOS countries. This has led the hardwood sector to compile a report outlining the difficulties which will be presented to the EC with the aim of receiving EU support.

The EOS hardwood sector has also organised a European Hardwood Conference in Paris on November 4 when the market situation will be discussed.