{"id":88199,"date":"2024-10-24T08:54:55","date_gmt":"2024-10-24T08:54:55","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/how-russian-birch-supply-cuts-are-leading-to-plywood-mill-closures-in-finland\/"},"modified":"2025-09-19T09:03:01","modified_gmt":"2025-09-19T09:03:01","slug":"how-russian-birch-supply-cuts-are-leading-to-plywood-mill-closures-in-finland","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/how-russian-birch-supply-cuts-are-leading-to-plywood-mill-closures-in-finland\/","title":{"rendered":"How Russian birch supply cuts are leading to plywood mill closures in Finland"},"content":{"rendered":"

<\/span>Mets\u00e4 Group recently announced the closure of its birch and softwood plywood mills in Suolahti, Central Finland.<\/p>\n

The reason given is poor profitability, primarily due to the high price of birch logs, a situation that stems indirectly from Russia's war and the halt of birch log imports from the country. Additionally, domestic birch cultivation has not been sufficiently encouraged.<\/p>\n

Last year, the recorded trade volume of birch logs was 0.86 million cubic meters, with almost no imports.<\/p>\n

While this amount is not significant compared to total logging, it is roughly ten times the volume of birch logs used at Suolahti.<\/p>\n

Suolahti was able to produce 35,000 cubic meters of birch plywood. With a yield efficiency of around 30% for birch log peeling, full-capacity log consumption would have been just over 100,000 cubic meters. However, there have been stoppages at the plant.<\/p>\n

Although Suolahti accounts for 10% of the birch log usage, the overall picture is unlikely to change despite the plant closures. There are other buyers, and birch logs will remain a scarce resource.<\/p>\n

\"We are not commenting.\" The production of birch plywood is set to end in Suolahti by the end of March next year, with softwood plywood production continuing until the end of 2026.<\/p>\n

Mets\u00e4 Group refers to the upcoming restructuring negotiations and does not want to publicly address issues related to the closure before the negotiations conclude. The impact on wood usage is expected to be minimal.<\/p>\n

After Suolahti's closure, Mets\u00e4 Group will still have birch plywood production in Punkaharju. Other domestic birch plywood manufacturers include UPM in Joensuu and Savonlinna, Koskisen Oyj in K\u00e4rk\u00f6l\u00e4, with thin plywood production in Hirvensalmi, and Riga Wood Finland in Sastamala.<\/p>\n

Other plywood manufacturers are also not commenting on the consequences of the Suolahti closure. UPM and Koskisen cite the quiet period preceding their financial results announcements.<\/p>\n

Riga Wood Finland states that commentary on the birch plywood market belongs to its Latvian parent company, Latvijas Finieris.<\/p>\n

Import ban leaks<\/strong><\/p>\n

In the broader context, Suolahti's birch plywood is a small matter. A larger issue is that Russian birch plywood has played a significant role in the European market, and it continues to trickle into Europe despite the import ban.<\/p>\n

Economic sanctions were supposed to halt imports in July 2022, but suspicions of circumvention through third countries linger.<\/p>\n

In August 2023, the EU began investigating illegal imports of Russian birch plywood through Kazakhstan and Turkey. These countries have not historically been major exporters of birch plywood.<\/p>\n

As a result of the investigation, the European Commission extended the anti-dumping duty on Russian plywood to Kazakhstan and Turkey. The anti-dumping duty is 15.8%, and the decision took effect in May. Importers are required to pay the duty retroactively on all illegal birch plywood imported since August 2023.<\/p>\n

Following the decision, trade from Turkey and Kazakhstan has decreased, but new bypass routes are suspected. At the beginning of last year, hardly any birch plywood was imported from Georgia, but imports have increased since the end of the year.<\/p>\n

In the first half of this year, Russian birch plywood imports to China more than doubled from last year. There are suspicions in the market that Russian birch plywood may find its way into the EU via China. The Commission has recently launched an anti-dumping investigation into hardwood plywood imports from China.<\/p>\n

Import cases or routes<\/strong><\/p>\n

Timo Tolonen, Head of International Trade at the Finnish Forest Industries Federation, reports suspicions that new bypass routes have emerged like mushrooms after rain following the imposition of anti-dumping duties.<\/p>\n

\"From Uzbekistan towards Estonia, the Georgian route, China is often mentioned, and destination countries have included the Netherlands, Germany, and Poland,\" Tolonen explains.<\/p>\n

He says it is difficult to estimate whether these are isolated import cases or larger import routes. For understandable reasons, quantities are not recorded, but the total volume can be assumed to be significant.<\/p>\n

\"It is clear that sanctions are being circumvented by any means possible.\"<\/p>\n

Blocking leaks in the import ban is challenging. New import channels open at least as quickly as old ones are closed.<\/p>\n

High prices also limit sawing<\/strong><\/p>\n

Haka-Wood, a birch sawmill in Viitasaari, is the northernmost facility in Finland that exclusively processes birch logs on an industrial scale. The birch logs freed up from Suolahti may interest the sawmill.<\/p>\n

Procurement manager Tuomas J\u00e4ntti says the birch log market is extremely tight.<\/p>\n

\"In the spring, we reduced sawing from two shifts to one precisely due to the availability of logs,\" J\u00e4ntti explains.<\/p>\n

Haka-Wood's annual log procurement is 60,000 cubic meters, with a target of 80,000.<\/p>\n

\"You could get more with money, but the price is already so high that profitability would be lost.\"<\/p>\n

In birch log sawing, the yield is lower than with softwoods, and 60,000 cubic meters of logs turn into 24,000 cubic meters of sawn timber. Eighty percent of the production is exported, mainly to furniture manufacturers in both Europe and the Far East.<\/p>\n

Haka-Wood sources logs both through its own procurement and from suppliers. The main procurement areas are Central Finland and Northern Savonia.<\/p>\n

Birch cultivation should be promoted<\/strong><\/p>\n

J\u00e4ntti hopes that birch cultivation will become more widespread and that recommendations for mixed-species forests will also be implemented in practice. He emphasizes that birch could be cultivated further north of the current procurement area. If the quality is sufficient, logs should be sourced from Kainuu and Northern Ostrobothnia.<\/p>\n

\"We also saw downy birch. In terms of properties, it doesn't differ from silver birch.\"<\/p>\n

J\u00e4ntti finds it difficult to assess the impact of Suolahti's birch plywood plant closure on wood procurement. The procurement areas overlap, and the raw material is similar in quality for both sawn timber and plywood, except that sawlogs are cut shorter. At Haka-Wood, the minimum log length is 3.1 meters.<\/p>\n

If only there was raw material<\/strong><\/p>\n

The birch log market is tight, and the price gap with softwood logs has narrowed. This decade, birch log prices have been 70-85% of the average softwood log prices, and this year prices have moved closer to the upper end of that range.<\/p>\n

In the latest economic outlook from the Natural Resources Institute Finland, it is predicted that the nominal price of birch logs will rise by up to 14% this year. Next year, the increase will moderate to 4%, which is slightly more than for softwood logs.<\/p>\n

\"Overall, the plywood industry and its products continue to be a positive example of how a traditional product segment of the forest industry can maintain its position in changing markets through strong development efforts,\" the outlook paints a positive picture but also highlights constraints:<\/p>\n

\"Birch plywood is a product whose production expansion in Finland is difficult, almost impossible, because the main production input, birch logs, is scarce and hardly available for import.\"<\/p>","protected":false},"excerpt":{"rendered":"

Mets\u00e4 Group recently announced the closure of its birch and softwood plywood mills in Suolahti, Central Finland. The reason given is poor profitability, primarily due to the high price of birch logs, a situation that stems indirectly from Russia’s war … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96307,"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-88199","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nHow Russian birch supply cuts are leading to plywood mill closures in Finland - 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\/how-russian-birch-supply-cuts-are-leading-to-plywood-mill-closures-in-finland\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"How Russian birch supply cuts are leading to plywood mill closures in Finland - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Mets\u00e4 Group recently announced the closure of its birch and softwood plywood mills in Suolahti, Central Finland. 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