Södra Wood will be making a temporary adjustment of production to achieve a balance between production and customer needs. In December, sawn timber production will be reduced by 60,000 m3.
Timber is gaining ground as the most sustainable building material and demand for Södra Wood’s products is experiencing long-term growth. In 2020 and 2021, the sawn timber market has been historically strong. Since the summer, however, stock levels have risen in the building materials trade and sales of wood products have returned to a level that is slightly better than 2019, but slightly lower than 2020. The building materials trade will therefore have a lower need for wood products for a few months to adjust its stocks.
“Production will be adjusted to achieve a balance between production and customer needs. This is a temporary change that will apply during December. Within a few months, we expect our customers’ stocks to return to normal levels, and for the rest of 2022, we expect that demand will balance full production at our sawmills. We are seeing continued favourable demand in the industry and in our markets outside Europe,” said Peter Jhaveri, President of the Södra Wood business area.
