Sodra halts sawmill production temporarily amid rising timber prices

Södra suspends production at all its sawmills for a short period this winter due to a timber shortage driving up wood prices, reported Skogsaktuellt citing the interview of Södra's CEO Lotta Lyråto Barometern-OT.Södra aims to maintain efficiency by pausing operations at intervals. Lotta Lyråstated that this is a temporary measure and expects conditions to improve by spring.

Vida, a major sawmill group in Sweden, announced in early February that it would shut down production at all 12 of its sawmills in southern Sweden for one week. Vida's CEO, Måns Johansson, told Dagens industri that timber prices had surged 50% over the past year, with continued upward pressure in recent months. Johansson emphasized the necessity of the halt to minimize future losses, describing the current market as tough for sawmills. He also noted that stopping production entirely, rather than reducing output gradually, allows the company to retain staff and conduct maintenance that would otherwise have been postponed until summer.

Södra reported an 18% increase in operating profit for 2024, reaching 2.63 billion kronor. The company noted that Sweden's raw material market last year was impacted by supply shortages, affecting forest owners and industries reliant on lumber, pulp, energy, and chemicals.