Stora Enso notices oversupply in the sawn timber market

Stora Enso notices oversupply in the sawn timber market

Finnish-Swedish forest industry company Stora Enso is preparing for oversupply in the sawn timber market.

Stora Enso Wood Products has completed employer-employee negotiations at its pine sawmills in Lappeenranta and Joensuu and its spruce sawmill in Kitee in Finland.

As a result, the entire personnel of the three sawmills may be temporarily laid off for a period of up to 90 days by April 2019 if necessary. If implemented, the intention of the lay-offs is to bring production volumes to a level that matches market demand.

Back in September 2018, Stora Enso started employer-employee negotiations at its LVL mill and sawmill in Varkaus in Finland. According to the company, additional pressures on the competitiveness of the units was caused by the rapidly rising log prices this year. The plants have done a number of measures to improve cost and production efficiency, which are going to continue according to the company.

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