Canfor to curb sawmill production in Sweden
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In Sweden, forest industry group VIDA AB, a subsidiary of Canada-led forest industry major Canfor, has announced that it is reducing production capacity at its Swedish operations in response to a decline in market demand for wood products.
Reduced operating plans will take effect from September 12 and will result in a 15% reduction in production capacity – which is expected to be in effect through Q4 2022.
“Rising inflation and mortgage rates in Europe, which is expected to last through the autumn, is affecting the demand for timber and as a result we are reducing production capacity. We are committed to continuing to meet the needs of our customers,” said Don Kaynepresident and CEO, Canfor.
The reduction in production capacity will be achieved through reduced shifts. The company will continue to evaluate and make adjustments to business plans based on changes in market demand.
VIDA said it sees no signs that the market and consumption will turn upward in the near future.