Vida Wood is Europe’s new number three

Update – July 23, 2025

With the acquisition of Karl Hedin by Vida Wood, the Swedish group moves up to third place in the Holzkurier’s sawmill ranking. The softwood lumber output of the three sawmills is 550,000 m³ a year. Vida’s annual production capacity will now rise to 3.35 million m³.

It is the third time within just a few months that the European softwood lumber ranking has changed: Following the acquisition of the former Ziegler site in Plößberg, Rettenmeier briefly rose to third place at the beginning of this year. After the announcement of its 2025 target figures, the Pfeifer Group was once again the third largest European lumber producer.

Scroll down to find the updated table.

May 20, 2025

Last year, Europe’s largest softwood lumber producers reported a target cutting volume of 41.6 million m³, which would have corresponded to a 5% increase compared to 2023. 

The latest figures show a 2024 production output of 39 million m³ and thus no year-on-year increase. About two thirds of the companies produced less than they had originally planned.

No change on the podium

Binderholz remains Europe’s number-one lumber producer with a target output of 5 million m³, followed by Stora Enso, whose lumber production will be around 4.6 million m³ according to Holzkurier estimates. Tyrolean Pfeifer Group completes the Top 3, with a target production output of 3.1 million m³ in 2025.

Dynamic start to the year

This year began with several acquisitions. First up was HS Timber Group, which acquired two Latvian sawmills – Vika Wood SIA and Kurekss SIA, with a total cutting capacity of 550,000 m³ a year – within just two weeks. A year ago, the group’s Argentinian sawmill, with an annual production capacity of 370,000 m³, also officially opened.

Largest sawmill with a new owner

At the end of January, the Rettenmeier Group announced the acquisition of the former Ziegler site in Plößberg. With a capacity of up to 2.2 million m³ of log wood per year, it is reportedly the biggest single sawmill site in Europe. In several statements, the new owner emphasized that it intends to substantially curtail cutting in Plößberg in the future. Rettenmeier reached another milestone in January with the commissioning of the extensively modernized site in Inčukalns, Latvia. The company puts the cutting the capacity of the Baltic sawmill at 1 million m³ of log wood a year.

Both HS Timber Group and Rettenmeier Group plan to significantly increase their lumber production this year – each to 3 million m³. As a result, the two companies are tied for fourth place in the ranking. While Rettenmeier plans to increase its lumber production by 50%, HS Timber Group wants to raise its output by 76% compared to 2024. This pushes Vida Wood, whose production volume will be 2.8 million m³, into sixth place.

Stora Enso to be the largest sawmill group in 2026?

Stora Enso had already signed an agreement with Junnikkala last year. In April, the acquisition of the three Finnish sawmills, with their annual production capacity of around 700,000 m³, was officially approved by the authorities. The company stated that this will create synergies in terms of raw material and by-product flows as well as in purchasing. As a result, Stora Enso could once again become Europe’s largest softwood lumber producer next year. Studies are also currently underway to explore the potential construction of a sawmill at the pulp production facility in Imatra/FI.

Swedish timber group Södra took the Top 10 spot vacated as a result of Ziegler Group’s insolvency. Lumber production is expected to amount to 1.8 million m³ in 2025. As part of consolidation measures, Södra discontinued its sawmill operations in Klevshult/SE last year and converted the site into a planing mill. The company aims to achieve economies of scale by shifting production volumes to larger Södra sawmills. Both Vida Wood and Södra announced in February that they would temporarily stop production at all sawmills due to insufficient log supply.

Fruytier Scierie plans to increase its output by 14% to just under 1.6 million m³ through optimizations and efficiency improvements of its saw lines and increased export activities. As a result, the Belgian company also moves up several places in the ranking.

High production levels in Finland

Metsä Fibre made a significant leap. The Finnish timber company plans to increase its lumber production by almost a quarter year on year to 1.6 million m³ in 2025, gaining eight places in the European ranking to 12th place. At the end of June 2024, operations at the Merikarvia sawmill in southwest Finland were discontinued. According to Metsä, production there was still 185,000 m³ in 2023.

Meanwhile, capacity utilization at the Rauma sawmill, which was put into operation in the third quarter of 2022 following investments of approximately €260 million, is expected to increase substantially. In 2023, output in Rauma was around 300,000 m³. With a nominal production capacity of 750,000 m³ of log wood a year, this corresponded to a capacity utilization of 40%. Two other Finnish companies, i.e. Versowood and UPM, also plan to raise their lumber production output compared 2024. Versowood wants to increase its production by 6% to 1.5 million m³, while UPM’s lumber output is expected to rise by around 5% to 1.3 million m³.

Newcomers in the ranking

Keitele is new to the ranking of Europe’s largest softwood lumber producers. The family-owned company, which operates three production sites in Finland, has recently made major investments in its sawmills. Once the investment program has been completed, capacity is expected to reach 1.2 million m³. As for 2025, the Holzkurier expects an output of 1 million m³. According to an expert with in-depth knowledge of the Finnish market, Finnish lumber production in 2025 is expected to be surprisingly high at 11.1 million m³.

Improving efficiency is vital

Due to the sharp rise in log prices, sawmill suppliers are also reporting growing interest in measures to increase efficiency in the rip-cutting process. The Holzkurier currently uses a factor of 0.55 to convert logs to lumber. According to leading machine manufacturers, this factor is still correct, but is likely to increase further in the future. In contrast, there is an increasing focus on the cutting of small-diameter log wood in Europe – a trend that tends to result in lower yields.