{"id":88024,"date":"2024-08-28T10:18:04","date_gmt":"2024-08-28T10:18:04","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/holmen-to-cut-production-at-one-of-its-sawmills-in-sweden-in-response-to-weak-market\/"},"modified":"2025-09-19T09:02:40","modified_gmt":"2025-09-19T09:02:40","slug":"holmen-to-cut-production-at-one-of-its-sawmills-in-sweden-in-response-to-weak-market","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/holmen-to-cut-production-at-one-of-its-sawmills-in-sweden-in-response-to-weak-market\/","title":{"rendered":"Holmen to cut production at one of its sawmills in Sweden in response to weak market"},"content":{"rendered":"

<\/span>Holmen has announced the layoff of 45 employees at Kroksj\u00f6n Sawmill, located outside Skellefte\u00e5, effectively reducing the workforce by nearly half. The decision comes in response to a weak sawn timber market.<\/p>\n

Kroksj\u00f6n Sawmill, one of Holmen's five sawmills, has been in operation since 1925 and became part of Holmen in October 2020. Employees received the news on Monday afternoon, with Johan Padel, Business Area Manager for Timber, delivering the announcement in person. Speaking to Skogsaktuellt, Padel noted that the news understandably led to disappointment among the employees.<\/p>\n

\"Many were likely in shock, both surprised and disappointed. We've been struggling with profitability at the sawmill for some time. At the turn of the year, we switched to exclusively sawing spruce. We saw some improvement, but the economy didn\u2019t pick up, so we were forced to take this drastic step,\" he said.<\/p>\n

Weak sawn timber market<\/strong><\/p>\n

Kroksj\u00f6n Sawmill employs around 105 people, with those affected by the layoffs working in various production roles. Holmen aims to reduce operations from two shifts to one, which will nearly halve production, according to Padel.<\/p>\n

The decline in construction activity, resulting in weak demand for timber, is the main reason for the cutbacks. \"The construction market is difficult right now. New construction has slowed significantly, as have repairs and renovations. Kroksj\u00f6n is heavily focused on the Swedish market, and we had hoped that the building market in northern Sweden would fare better, but we've been hit hard here as well,\" Padel explained.<\/p>\n

He added that sawmills are being squeezed between forest owners and the struggling construction market.<\/p>\n

Raw material supply<\/strong><\/p>\n

When asked about the supply of raw materials, Padel acknowledged it has been strained but manageable. However, he noted that rising raw material costs, such as S\u00f6dra\u2019s recent price increase, have made operations more challenging.<\/p>\n

Regarding timber prices, Padel expressed concern over the lack of alignment between finished goods prices and timber costs. \"It\u2019s unfortunate that there isn\u2019t greater synchronization between these markets. But, as we saw in 2021 and 2022 when we had excess profitability, the two markets don\u2019t always move in sync. It\u2019s clear we\u2019re getting caught in a tough spot in situations like this.\"<\/p>\n

Looking ahead, Padel was not optimistic about the current year. \"I think this year is a write-off. Our demand is seasonal, and autumn isn\u2019t a strong period. A turnaround in the timber market typically comes in the spring, so we\u2019re hoping that construction and market confidence will improve by spring 2025.\"<\/p>\n

When asked if there could be more layoffs in the future, Padel didn't rule out the possibility but stated that no further reductions are currently anticipated. He also mentioned that Holmen remains committed to Kroksj\u00f6n as an industrial site and is exploring the potential for a small-diameter timber line, with optimism for the availability of raw materials and the market in the future.<\/p>\n

The 45 employees who have been notified of their layoffs have four months of employment remaining, regardless of their notice period, if the layoffs proceed as planned.<\/p>","protected":false},"excerpt":{"rendered":"

Holmen has announced the layoff of 45 employees at Kroksj\u00f6n Sawmill, located outside Skellefte\u00e5, effectively reducing the workforce by nearly half. The decision comes in response to a weak sawn timber market. Kroksj\u00f6n Sawmill, one of Holmen’s five sawmills, has … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":50499,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716],"tags":[],"class_list":["post-88024","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nHolmen to cut production at one of its sawmills in Sweden in response to weak market - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/holmen-to-cut-production-at-one-of-its-sawmills-in-sweden-in-response-to-weak-market\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Holmen to cut production at one of its sawmills in Sweden in response to weak market - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Holmen has announced the layoff of 45 employees at Kroksj\u00f6n Sawmill, located outside Skellefte\u00e5, effectively reducing the workforce by nearly half. 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