{"id":88526,"date":"2025-02-08T09:23:15","date_gmt":"2025-02-08T09:23:15","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/2024-was-a-year-of-setbacks-and-rising-costs-for-one-of-europes-leading-forestry-companies\/"},"modified":"2025-09-18T17:29:47","modified_gmt":"2025-09-18T17:29:47","slug":"2024-was-a-year-of-setbacks-and-rising-costs-for-one-of-europes-leading-forestry-companies","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/2024-was-a-year-of-setbacks-and-rising-costs-for-one-of-europes-leading-forestry-companies\/","title":{"rendered":"2024 was a year of setbacks and rising costs for one of Europe\u2019s leading forestry companies"},"content":{"rendered":"

2024 proved to be a difficult year for Mets\u00e4 Group, one of Europe\u2019s largest forest industry companies. <\/span>In a statement from President and CEO Ilkka H\u00e4m\u00e4l\u00e4, the company revealed that the financial performance for the year was exceptionally weak, with comparable operating profit dropping to \u20ac203 million, a significant decrease compared to previous years. The drop in profit was a direct result of various challenging factors, both internal and external, that hindered Mets\u00e4\u2019s ability to maintain growth.<\/p>\n

Weak market conditions and rising costs<\/strong><\/p>\n

A key contributor to the financial downturn was the subdued demand across the majority of Mets\u00e4\u2019s product groups. While tissue and cooking papers, along with Kerto\u00ae LVL (laminated veneer lumber), performed better than other segments, the overall demand remained weak. This was compounded by political strikes at the start of the year, which resulted in a \u20ac60 million loss. On top of this, Mets\u00e4 struggled to pass on the higher raw material and logistics costs to customers due to weak market conditions, further squeezing margins.<\/p>\n

In the forest industry, the mechanical sector faced particular challenges. The recession in the construction industry, combined with high wood prices, made it difficult to maintain profitability. To adjust to the weak demand, Mets\u00e4 had to significantly curtail its sawn timber production in 2024. The decline in construction activity also hit hard, as demand for traditional wood-based materials remained low, and the use of more cost-effective solutions gained momentum.<\/p>\n

Investments and Depreciation
\nOver the past few years, Mets\u00e4 has made significant investments in expanding its capacity. However, these investments, while important for the company\u2019s future, contributed to an increase in depreciation, which weighed heavily on the financial results. Mets\u00e4\u2019s ambitious plans to expand production capacity in the sawmill, pulp, and paperboard industries have yet to yield the expected benefits, with weak demand and the early stages of production ramp-up delaying the anticipated returns.<\/p>\n

Despite these hurdles, H\u00e4m\u00e4l\u00e4 expressed confidence in the company\u2019s long-term strategy, highlighting that the substantial development investments already made and those planned for the future would strengthen Mets\u00e4\u2019s operational competitiveness. With a stable equity ratio of 56% and a debt-free parent company, Mets\u00e4 remains in a strong financial position to weather the storm and continue its long-term development.<\/p>\n

Kerto LVL and the pulp market: A silver lining<\/strong><\/p>\n

Not all aspects of 2024 were bleak, however. Mets\u00e4's Kerto LVL product, which has seen increasing demand in industrial construction, particularly in the US, was a standout performer. Mets\u00e4 was able to fully utilize its Kerto LVL capacity and even slightly raise prices, benefiting from its efficiency advantage in construction projects. This success has been a bright spot in an otherwise difficult year.<\/p>\n

Similarly, Mets\u00e4 Fibre\u2019s Kemi and \u00c4\u00e4nekoski bioproduct mills performed well in comparison to the broader market. Despite fluctuations in the Chinese pulp market\u2014an important market for Mets\u00e4\u2014the company\u2019s mills continued to be among the most efficient globally. However, the Kemi mill was also impacted by a gas explosion, which led to a \u20ac100 million loss. Fortunately, insurance compensations partially offset the impact, and the mill is expected to return to full capacity later in 2025.<\/p>\n

Looking forward: Ssustainability and long-term goals
\nMets\u00e4 Group has also set its sights on enhancing sustainability efforts. A significant portion of the wood trade in 2024 was conducted under the Mets\u00e4 Group Plus model, which integrates enhanced forestry measures aimed at safeguarding biodiversity. The company is focused on regenerative forestry, with the goal of ensuring that commercial forest management has a net positive impact on forest biodiversity.<\/p>\n

As part of its long-term strategy, Mets\u00e4 is prioritizing environmentally efficient solutions, such as wood-based construction and fiber-based packaging. These efforts align with the growing demand for renewable materials and provide Mets\u00e4 with a competitive edge in addressing climate change and sustainability challenges.<\/p>\n

The company also continues to explore growth opportunities in the tissue paper market, with major investments planned in Sweden and a potential mill investment in the UK. The expansion in the UK will strengthen Mets\u00e4\u2019s presence in the region, where demand for sustainable tissue products is rising.<\/p>\n

Leadership change and a new era for Mets\u00e4<\/strong><\/p>\n

In the face of these challenges, Mets\u00e4 Group is undergoing a leadership transition. Ilkka H\u00e4m\u00e4l\u00e4, who has been instrumental in the company\u2019s growth and development, will retire later this year. His successor, Jussi Vanhanen, has already been appointed as the new CEO, effective July 2025. Vanhanen is expected to build on Mets\u00e4\u2019s successes, working closely with H\u00e4m\u00e4l\u00e4 to ensure a smooth transition.<\/p>\n

\u201cWe are well placed to continue our planned long-term development,\u201d H\u00e4m\u00e4l\u00e4 said, reflecting on the company\u2019s position as it prepares for the next phase of its journey. The transition in leadership and the ongoing investments in sustainability and operational improvements position Mets\u00e4 to navigate future challenges and capitalize on opportunities in the evolving global forest industry.<\/p>","protected":false},"excerpt":{"rendered":"

2024 proved to be a difficult year for Mets\u00e4 Group, one of Europe\u2019s largest forest industry companies. In a statement from President and CEO Ilkka H\u00e4m\u00e4l\u00e4, the company revealed that the financial performance for the year was exceptionally weak, with … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":96242,"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-88526","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","topic-forestry","topic-lumber","topic-price-analysis-and-info","topic-sawmilling","topic-wood-construction","topic-wood-products","area-europe","area-global"],"acf":[],"yoast_head":"\n2024 was a year of setbacks and rising costs for one of Europe\u2019s leading forestry companies - 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\/2024-was-a-year-of-setbacks-and-rising-costs-for-one-of-europes-leading-forestry-companies\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"2024 was a year of setbacks and rising costs for one of Europe\u2019s leading forestry companies - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"2024 proved to be a difficult year for Mets\u00e4 Group, one of Europe\u2019s largest forest industry companies. 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