Finnish sawmiller Vapo Timber has declared a €9.3m operating loss for 2011 (2010: €7m profit).
Vapo said its raw materials costs increased by 6% during the year, while the average selling price fell by 7%. Sawmill cost-effectiveness fell towards the end of 2011, with production cutbacks being introduced in two mills last December.
The division’s sales totalled €121.3m (2010: €135.4m). Production reached 533,000m³.
A new production line at Hankasalmi should improve efficiency and cost-effectiveness in the division going forward.
Meanwhile, Vapo Group, which also includes biofuels, energy generation and peat production, recorded an operating loss of €41.9m, principally due to impairments in wood pellet operations totalling €33.7m.
Poor conditions in the wood pellet market led Vapo to close three wood pellet plants. Its wood pellet operations recorded operating losses of €7m.
