S\u00f6dra expects weaker demand for wood products due to rising inflation and higher interest rates in Europe and the U.S. As a result of these factors, the lumber market was already slowing in the 2Q 2022 and S\u00f6dra Wood expects the negative trend to continue throughout the rest of the year.<\/p>\n
So far, S\u00f6dra Wood expects the biggest impact on the building materials trade, but also predicts a negative trend in the wood products industry in the second half of the year. S\u00f6dra Wood has therefore decided to now reduce sawn timber production by approximately 100,000 m\u00b3 for the remainder of 2022. The adjustment is being made to create a balance between production and customer needs.<\/p>\n
Due to the current uncertainty of the business environment \u2013 where the sawn timber market could both rapidly deteriorate or improve \u2013 S\u00f6dra 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.<\/p>\n
\u201cWe know that demand for S\u00f6dra Wood\u2019s products will be favourable in the long term and that confidence in timber as the most sustainable construction material is strong. But although the long-term trend is positive, we must work actively to counter market volatility and balance production with customer needs. We are doing this by reducing production temporarily. We are following developments carefully and continue work actively with what we can influence,\u201d said Peter Jhaveri Business Area President for S\u00f6dra Wood.<\/p>\n
S\u00f6dra Wood produces more than 2 million m\u00b3 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.<\/p>","protected":false},"excerpt":{"rendered":"
S\u00f6dra expects weaker demand for wood products due to rising inflation and higher interest rates in Europe and the U.S. As a result of these factors, the lumber market was already slowing in the 2Q 2022 and S\u00f6dra Wood expects … Continue reading