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Finnish wood products manufacturer Keitele Group is laying off its staff.\u00a0This is an exceptional action, as the company has been known for never laying off its personnel before in its operating history.<\/p>\n
According to Keitele Timber's CEO\u00a0Matti Kyl\u00e4vainio,<\/strong>\u00a0the layoffs concern Keitele Timber Oy and Keitele Wood Products Oy and will last a maximum of 90 days.<\/p>\n \"The order intake for the first quarter was insufficient.\u00a0Before the layoffs, we have adjusted production by taking short-time holidays and winter vacations at the end of last year,\" Kyl\u00e4vainio tells Keskisuomalai.<\/p>\n However, the company believes that demand will recover in key markets this year.<\/p>\n Back in February 2023, Keitele reported that the demand for sawn timber and wood products has weakened, but only temporarily The reason behind the decline is, among other things, the world economic situation, the war in Ukraine, the rise in energy prices and interest rates, which have reduced construction. In this way, the demand and prices for products from the sawmill industry have also fallen rapidly.<\/p>\n At the same time, the company's production costs have risen higher than ever before.\u00a0This has been influenced by the high price of electricity and fuel, together with the rise in the price of log wood, Keitele said in February.<\/p>\n About Keitele<\/strong><\/p>\n Keitele Group is a family run business founded in 1981. The company has grown into one of Finland\u2019s largest mechanical wood processing companies. Keitele log procurement areas are located close to the production units in\u00a0Keitele\u00a0in Eastern Finland,\u00a0Alaj\u00e4rvi\u00a0in Ostrobothnia, and\u00a0Kemij\u00e4rvi\u00a0in Lapland.<\/p>\n Keitele Group consists of three independent companies. Parent company\u00a0Keitele Forest Oy\u00a0is responsible for the log procurement,\u00a0Keitele Timber Oy\u00a0cuts the logs into sawn timber and\u00a0Keitele Wood Products Oy\u00a0is the further processing division of the group.<\/p>","protected":false},"excerpt":{"rendered":" Finnish wood products manufacturer Keitele Group is laying off its staff.\u00a0This is an exceptional action, as the company has been known for never laying off its personnel before in its operating history. According to Keitele Timber’s CEO\u00a0Matti Kyl\u00e4vainio,\u00a0the layoffs concern … Continue reading