Nearly a year into his role as CEO of Vida, Karl-Johan L\u00f6wenadler says the group remains confident about its underlying position despite one of the most difficult operating environments Swedish sawmills have faced in years.<\/p>\n
His latest assessment is notably more measured than the alarm surrounding the sector might suggest. The market for sawn timber remains challenging, competition is intense and raw-material supply is still the central constraint, particularly in southern Sweden. Yet L\u00f6wenadler argues that Vida enters the next phase with a strong production platform, established customer relationships and a business model that can still generate attractive returns if the group secures sufficient timber and keeps costs under control.<\/p>\n
\n\u201cWe have a strong production system and good demand for our products. The challenge is to ensure the availability of timber by being an attractive and long-term partner to forest owners.\u201d<\/p>\n<\/blockquote>\n
That emphasis on timber supply is consistent with the message Vida has been giving throughout 2026. The problem facing the group is not simply a lack of demand for sawn timber. It is the combination of historically expensive logs, insufficient raw-material availability in southern Sweden and a lumber market that has not risen enough to compensate for the increase in input costs.<\/p>\n
L\u00f6wenadler says one of the clearest lessons from his first year has been just how complex the supply side is. In southern Sweden, where a large share of the forest is privately owned, harvesting decisions are influenced by far more than current timber prices alone. That makes raw-material procurement less predictable and turns long-term relationships with forest owners into a strategic issue rather than a simple purchasing function.<\/p>\n
At the same time, Vida continues to see value in its customer relationships. L\u00f6wenadler says the company intends to remain close to customers and concentrate on markets where it can generate the highest value, rather than simply chase volume in an increasingly competitive environment.<\/p>\n
\n\u201cWe operate in markets where competition is fierce, but through high quality, good service and long-term relationships we continue to strengthen our position.\u201d<\/p>\n<\/blockquote>\n
Raw material pressure has already forced structural decisions<\/strong><\/p>\n
As GWMI previously reported, Vida\u2019s view of the raw-material problem hardened earlier this year when the group announced the closure of its sawmills in Urshult and Orrefors.<\/p>\n
The two mills together represented around 265,000 m\u00b3 of annual lumber production capacity. After the closures, Vida\u2019s remaining sawmills will have combined annual production capacity of around 3 million m\u00b3.<\/p>\n
L\u00f6wenadler was clear at the time that the decision was not driven by a short-term financial crisis, but by a structural imbalance between sawmill capacity and available sawlogs in southern Sweden.<\/p>\n
All of Vida\u2019s mills were evaluated against a range of criteria, with raw-material availability carrying the greatest weight. Capacity, investment requirements, logistics, product focus and long-term competitiveness were also considered. In the final assessment, Urshult and Orrefors were judged to face the greatest difficulty in supporting the investment needed for future competitiveness.<\/p>\n
The raw material previously supplied to the two mills is being redirected to nearby Vida operations.<\/p>\n
That decision helps explain what might otherwise appear contradictory in the company\u2019s current position. Vida has reduced the number of mills it operates while continuing to urge forest owners to harvest and sell more timber.<\/p>\n
From the company\u2019s perspective, the two measures point in the same direction. Fewer plants competing for a constrained raw-material base should allow the remaining operations to run at higher utilisation rates, while additional harvesting would ease the pressure on supply.<\/p>\n
\n\u201cIn order to show a profit and be competitive, a sawmill must operate at full capacity.\u201d<\/p>\n<\/blockquote>\n
That is especially important when raw material is expensive. Swedish timber prices have eased from the record levels seen in 2025, but for several assortments they remain around twice the levels recorded in 2019. Lumber prices, meanwhile, have not risen enough to restore comfortable margins.<\/p>\n
The result is an unusual squeeze in which forest owners still enjoy historically attractive log prices while sawmills struggle to recover those costs in finished lumber markets.<\/p>\n
Vida still sees room to strengthen its position<\/strong><\/p>\n
L\u00f6wenadler\u2019s latest comments suggest that Vida does not see this environment as a reason to retreat from the market, but rather as a test of which mills and which customer relationships can generate the best returns.<\/p>\n
The company\u2019s focus remains on profitability, cost control and competitiveness. Looking five years ahead, L\u00f6wenadler says the ambition is for Vida to remain one of Sweden\u2019s most profitable sawmill companies.<\/p>\n
\nLooking five years ahead, L\u00f6wenadler says the ambition is for Vida to remain one of Sweden\u2019s most profitable sawmill companies. \u201cTo get there, we must continue to improve our competitiveness, have control over our production costs and offer the best service on the market.\u201d<\/p>\n<\/blockquote>\n
The strategy therefore rests on a fairly simple equation: secure enough timber, direct it towards the most competitive mills, keep those mills highly utilised and concentrate sales on customers and markets where Vida can preserve value.<\/p>\n
That is also why the group\u2019s earlier closures should not be read simply as a contraction story. Vida is shrinking capacity in selected locations while trying to strengthen the operating economics of the network that remains.<\/p>\n
The market backdrop is still difficult. Raw-material availability in southern Sweden is unlikely to improve quickly, competition among mills remains intense and sawn timber prices still leave little room for error. But L\u00f6wenadler\u2019s first-year assessment suggests that Vida believes the decisive issue is now less about installed capacity than about how effectively the company can feed and operate the capacity it chooses to keep.<\/p>\n
For Vida, that makes access to timber the central competitive question. The group may have fewer sawmills than it did at the start of 2026, but its objective for the remaining plants is unchanged: secure enough raw material to keep them running hard, maintain close customer relationships and protect margins in a market where neither logs nor lumber offer much room for complacency.<\/p>","protected":false},"excerpt":{"rendered":"
Nearly a year into his role as CEO of Vida, Karl-Johan L\u00f6wenadler says the group remains confident about its underlying position despite one of the most difficult operating environments Swedish sawmills have faced in years.<\/p>","protected":false},"author":1,"featured_media":100182,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-100181","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n
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