Södra Wood Announces Production Adjustment to Better Align Production With Customer Demand

Södra Wood announced on Monday (8-22-22) that, while it still expects the long-term prospects for the use of sustainable building materials to remain strong, the company is now anticipating weaker demand for wood products in the short term due to increasing inflation and higher interest rates in both Europe and the US.

Södra points to the slowing in demand for sawn timber products in Q2, and Södra Wood expects that the slower pace in the sawn timber market will continue through the remainder of 2022.

As a result of the slowing sawn timber products market, Södra Wood has decided to now reduce sawn timber production by approximately 100,000 m³ for the remainder of 2022. The adjustment is being made to create a balance between production and customer needs.

In addition, due to the current uncertainty of the business environment—where the sawn timber market could both rapidly deteriorate or improve—Södra Wood is not ruling out the fact that further measures may be required or that planned shutdowns may not occur during the autumn if the market take an unexpected turn.

Södra Wood produces more than 2 million m³ of wood products per year at its eight sawmills. Production will now be adjusted at most of these sawmills and each sawmill will be adjusted individually. Production will be individually adjusted depending on the assessed development of demand for each product and market segment.