{"id":88724,"date":"2025-04-01T04:18:56","date_gmt":"2025-04-01T04:18:56","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/finnish-plywood-mills-struggle-with-undercapacity-as-demand-remains-sluggish\/"},"modified":"2025-09-19T09:04:00","modified_gmt":"2025-09-19T09:04:00","slug":"finnish-plywood-mills-struggle-with-undercapacity-as-demand-remains-sluggish","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/finnish-plywood-mills-struggle-with-undercapacity-as-demand-remains-sluggish\/","title":{"rendered":"Finnish plywood mills struggle with undercapacity as demand remains sluggish"},"content":{"rendered":"

Demand for Finnish softwood plywood is being weakened primarily by the construction recession, but also by cheap imports of softwood plywood from Brazil.<\/span><\/p>\n

UPM's plywood mills have been on strike all spring. The first week-long strike was in February, and production has been suspended continuously since March 3. The latest strike warning is in effect until April 13.<\/p>\n

Collective agreement negotiations between the Finnish Industries Federation and UPM Plywood began a year ago in the spring. Production Director\u00a0Juhani Tenhunen\u00a0from UPM Plywood says that the agreement texts were finalized in August.<\/p>\n

The spring strikes are therefore simply about a wage settlement.<\/p>\n

According to Tenhunen, the employees are demanding clearly higher wage increases than what has been promised to employees covered by the Technology Industries Agreement, which has formed the general line for the export industry. The Finnish Industrial Federation disagrees on the increases: according to it, the wage increases in the company-specific collective agreements in the mechanical forest industry have generally been significantly higher than UPM's offer.<\/p>\n

The largest of UPM Plywood's production plants is Pellos, which produces softwood plywood and is located in Ristiina, Mikkeli. The Kalso veneer mill operates in Kouvola, and UPM Plywood manufactures birch plywood in Savonlinna and Joensuu.<\/p>\n

\"Strikes have an impact on supply security. If they last too long, they cause significant damage to customers,\" says Tenhunen.<\/p>\n

Construction still in decline<\/strong><\/p>\n

Construction trends largely dictate softwood plywood production volumes.<\/p>\n

UPM is one of Europe's largest softwood plywood producers, so a slower-than-expected recovery in construction will inevitably affect the company.<\/p>\n

\"The demand situation for softwood plywood is not rosy. The recovery of construction in Europe has been slow, even though interest rates have fallen,\" says Senior Researcher\u00a0Antti Mutanen\u00a0from the Natural Resources Institute Finland (Luke).<\/p>\n

Demand for birch plywood used in the transport equipment industry is in better shape than for softwood plywood. That is why the price level has remained good, but there is a shortage of the raw material, birch logs, as imports from Russia have stopped.<\/p>\n

Factories are running at undercapacity<\/strong><\/p>\n

The capacity of Finnish plywood production is approximately 1.3 million cubic meters per year. Of this, birch plywood accounts for 330,000 and softwood plywood for 950,000 cubic meters.<\/p>\n

When Mets\u00e4 Group closes the Suolahti plywood mills in \u00c4\u00e4nekoski this year and next year and opens a factory producing kerto wood in the town, production volumes will increase slightly.<\/p>\n

\"Roughly speaking, it would seem that plywood mills had a utilization rate of over 70 percent last year,\" says forest economist\u00a0Matti Valonen\u00a0from Pellervo Economic Research PTT.<\/p>\n

Achieving a 100% utilization rate is practically impossible, but according to Valonen, for example, in 2021, factory utilization rates were around 90%.<\/p>\n

Luken Mutanen points out that last year both UPM and Mets\u00e4 Group had production restrictions at their plywood mills and demand for plywood in export markets has been weak.<\/p>\n

In other words, the effects of strikes will be smaller than they would be in a better demand situation.<\/p>\n

\u201cThis year, production will certainly not reach peak volumes, but on the other hand, would they have been achieved without the strikes?\u201d Mutanen says.<\/p>\n

Cheap imports into the EU are being curbed<\/strong><\/p>\n

Demand for softwood plywood has been weakened by its high imports from Brazil to the EU. The European Commission launched\u00a0anti-dumping investigations\u00a0at the beginning of March.<\/p>\n

\u201cThere have been suspicions that Brazilian plywood exporters are trying to capture market share by undercutting prices,\u201d Mutanen says.<\/p>\n

The investigations were launched after the Softwood Plywood Consortium filed a complaint with the European Commission. UPM Plywood is one of the four companies involved in the complaint. The Commission promises to complete its investigation within about a year.<\/p>\n

A similar case is fresh in our memory, as last year the EU began investigating the import of Russian birch plywood into Europe via Kazakhstan and Turkey. As a result of the investigation, the European Commission extended the anti-dumping duty on Russian plywood to also cover Kazakhstan and Turkey.<\/p>","protected":false},"excerpt":{"rendered":"

Demand for Finnish softwood plywood is being weakened primarily by the construction recession, but also by cheap imports of softwood plywood from Brazil. UPM’s plywood mills have been on strike all spring. The first week-long strike was in February, and … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":83898,"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-88724","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends"],"acf":[],"yoast_head":"\nFinnish plywood mills struggle with undercapacity as demand remains sluggish - 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\/finnish-plywood-mills-struggle-with-undercapacity-as-demand-remains-sluggish\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Finnish plywood mills struggle with undercapacity as demand remains sluggish - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Demand for Finnish softwood plywood is being weakened primarily by the construction recession, but also by cheap imports of softwood plywood from Brazil. 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