Aug 19, 2008. /Lesprom.com/. Södra Timber, part of the Södra forestry group, is cutting back production at saw mill subcontractor Bennsäter Saw mill in Piggsmala, Sweden, company announced. Four employees have received redundancy notices. “We’ve had an excellent relationship with Bennsäter over the past ten years, covering the mill’s entire production. The poor business cycle for wood products means we have to reduce production by 35 per cent,” says Peter Nilsson, president of Södra Timber. The timber market has steadily weakened during the year, initially due to the combination of increased production in Central Europe and the strong decline in construction in the US. “We’re now seeing a generally weaker market in Europe with less construction, particularly in Great Britain and Ireland, but also in Spain and the Netherlands. We don’t expect the market to turn before 2010. This means its essential to have a lower rate of production and reduce costs,” says Peter Nilsson. In conjunction with this, Södra Timber has to cut back its production rate at Bennsäter Saw mill, which produces products primarily for the US and British markets. “We’re cutting back from ten hours to eight as well as going from a five-day work week to a four-day week, which is an overall cut back of 35 per cent. This change unfortunately means that four of our employees have to leave the company. The new production rate is effective from the week beginning 25 August,” says Jonas Bennsäter, managing director of the Bennsäter saw mill. The change will not have any long-term impact on the cooperation between Södra Timber and Bennsäter Saw mill.