Forest industry production figures for January-March were boosted especially by cardboard, but pulp production also developed favourably. Forest industry companies produced 1.9 million tonnes in the 1Q, up 4.1% from the corresponding period of 2015. New investments have affected pulp and paperboard production volumes quite clearly.
Softwood sawn timber production increased 3.8% to 2.7 million cubic metres. Paper production continued to contract in the early part of the year, however, coming to 1.8 million tonnes in January-March. This is down 4.9% from the 1Q 2015.
Finnish producers continue to suffer from weaker cost competitiveness than companies located in our most significant rival countries. This is slowing the recovery of exports and employment, making it imperative for Finnish decision-makers to support the business environment of the industry by influencing the decisions made by the European Union.
The EU is currently promoting several schemes that could affect the industry's operating prerequisite substantially. The risk of so-called carbon leakage – the transfer of production to countries with lower costs – still looms large.
“Finland's representatives need to be alert at the EU table next autumn. The EU is currently dealing with reform of the emissions trading system, forest-related sustainability policies and environmental regulations for large combustion plants. The role of forests in climate policy shall also be on the table. In its present shape, the proposed regulation for large combustion plants could lead to Euro 150-420 million in additional costs for the forest industry,” says Timo Jaatinen, Director General of the Finnish Forest Industries Federation.
The significance of national, competitiveness-enhancing decisions is emphasised in the European operating environment. This is why the government should have introduced so-called emissions trading compensation in full at its budget negotiations.
