Sweden Timber CEO Mikael Arvidsson discussed market dynamics with about 120 UK timber traders in central London on October 8.
Arvidsson was presenting at the London Softwood Club lunch and meeting (LSC) at The Clermont Hotel, Charing Cross – one of the leading forums for discussion of global softwood market dynamics and how they impact the sizeable UK timber importing, production and distribution sectors.
Arvidsson, who has more than 18 years’ experience in the wood industry, shared that he had developed a business that began primarily in timber sales in 2013 before growing into an international forest-products group spanning timber, paper, speciality pulp and bio-based composite materials.
Taking questions from attendees, he highlighted current complexities with log sourcing in Sweden, both in terms of price and availability, saying that increasing timber production was difficult in the current environment. Damage caused by Storm Johannes in Sweden last year had generated additional logs to harvest, but he explained that those stocks were now used up.
He also hinted that the continuing difficult market situation, which was causing operational difficulties among the Swedish forest products industry, would likely continue.
“Consolidation has been the case in the last few years and it will probably continue,” he said.
Arvidsson was asked whether Swedish mills would continue their strong focus on the UK market bearing in mind the low timber prices. He said the UK was a very important market for Swedish mills, with established logistics and that it was not easy to change that.
Sweden Timber operates sawmills and planing and processing mills across Malmback, Hjortkvarn, Skillingaryd and Mora. The wider Amwood group, which Arvidsson is also Group CEO of, includes Hylte Paper, WoodComposite Sweden and Aspa Pulp, supplying customers in more than 50 countries.
The Malmbäck mill has two sawing lines and two planing lines, spruce timber products from the Småland highlands. The Hjortkvarn facility produces pine products.
The LSC’s next event will be the annual Christmas lunch in December, which generally attracts up to 200 traders.
