Södra and Vida Pause Sawmill Production in Sweden as Timber Shortage Drives Up Prices

Södra will temporarily halt production at all its sawmills for a short period this winter due to a timber shortage driving up prices, Skogsaktuellt reported (2-19-25). The move follows a similar decision by sawmill group Vida, which announced earlier in February that it would pause production at all 12 of its sawmills in southern Sweden.

Södra CEO Lotta Lyrå told Swedish Radio’s P4 Kalmar, per Skogsaktuellt, that pausing operations at intervals allows for more efficient production. She described the measure as temporary, with conditions expected to improve in the spring.

Vida CEO Måns Johansson told Dagens industri that timber prices at the start of 2025 had risen 50% over the past year.

“In recent months, we see continued upward pressure, which means that we have reached a level where the sawmills will bleed money, we must minimize future losses,” Johansson said. “The market is in many ways tough for sawmills right now. For us, the production shutdown is a first step, but I do not rule out more measures.”

Johansson believes that there are advantages to a production stop compared to partially reducing production.

“It’s quite a large apparatus to reduce production by, say, a quarter. Now we are doing it on a point-by-point basis instead of being able to retain staff in this way. We take the opportunity to do maintenance during the time of the production shutdown that we would otherwise have waited until the summer.”