Holmen AB is reducing production at its Bygdsiljum sawmill as disruptions to trade with the Middle East push up freight costs and limit export flows.<\/p>\n
The mill, part of Holmen Wood Products, will scale back output by around 30,000 m\u00b3 of lumber. The move is intended to limit losses as shipments to key markets become increasingly difficult and expensive.<\/p>\n
Holmen has significant exposure to the Middle East, and recent developments in the region are affecting both logistics and pricing. Shipping companies have raised rates due to higher risks and fuel costs, while traffic into the Persian Gulf has been halted. Freight to Saudi Arabia has become prohibitively expensive, leading the company to suspend deliveries to that market for the time being.<\/p>\n
The impact comes on top of an already weak sawmill market, where demand has been uneven and margins under pressure. With export routes disrupted, production adjustments have become necessary to avoid building unsold inventory.<\/p>\n
The reduction in output will also affect staffing levels, with around 20 positions expected to be cut at the Bygdsiljum site.<\/p>\n
Deliveries to Asia are continuing, although logistics remain more complex. Since earlier disruptions in the Red Sea, shipments to distant Asian markets have been rerouted around Africa, increasing transit times and costs. More broadly, transport conditions have deteriorated across routes, adding pressure to operating costs.<\/p>\n
Holmen said it will continue to monitor developments and adjust production accordingly as the situation evolves.<\/p>","protected":false},"excerpt":{"rendered":"","protected":false},"author":1,"featured_media":98279,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"Default","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204],"tags":[],"class_list":["post-98278","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news"],"acf":[],"yoast_head":"\n