In Sweden, the forest industry group VIDA AB, a subsidiary of Canada-headed forest industry major Canfor Corporation (Canfor) has announced that it is reducing the production capacity output of its Swedish operations in response to a downturn in market demand for wood products.
According to a statement, the market for sawn timber products has deteriorated significantly in recent months and there is currently an imbalance between supply and demand for timber products in large parts of the world.
VIDA says that it sees no signs that the market and consumption will turn upward in the near future.
The decrease in sawmill production capacity will be achieved through reduced shifts. VIDA will continue to assess and make adjustments to operating schedules based on changes in market demand.
Rising inflation and mortgage rates in Europe, which are expected to persist into the fall, are impacting demand for lumber and as a result, we are reducing production capacity. We are committed to continuing to meet the needs of our customers, said Don Kayne, President, and CEO of Canfor in a statement.
The reduced operating schedules, effective September 12, 2022, are expected to result in a 15 percent decrease in production capacity and are anticipated to be in effect through the fourth quarter.
However, in the long-term, VIDA remains positive about wood as a competitive building material and sees good long-term demand for sawn wood products.
