According to Södra, the reason for this step is an exceptional market situation in which lumber prices are too low compared to raw material prices and production costs.
The company emphasizes that the Swedish sawmill industry is faced with a difficult market situation. Log prices have reached record highs, while the construction industry is weak both in Sweden and internationally. In the US, construction activity has dropped to the lowest level since the Covid pandemic, and a substantial decline is evident in Europe as well.
As a result of weak demand for lumber, inventories at several production sites exceed planned levels toward the end of the year. At the same time, the stronger Swedish krona has further impacted profitability, as prices in local currency have remained unchanged since the spring.
