Nordic sawmill industry faces closures amid market instability

The Nordic sawmill industry is facing significant instability, with several companies announcing closures or staff reductions due to a combination of market factors. Stora Enso is closing its Veitsiluoto sawmill in Finland, while Moelven has ceased operations in Årjäng. Additionally, Holmen and Södra have announced workforce reductions, following previous closures by Vida in Urshult and Orrefors, and Bergkvist Siljan in Mora.

Senior advisor Johan Freij notes that while a drop in timber prices following major investments is a factor, the industry also faces a structural imbalance where production capacity exceeds available raw material. A primary concern is that rising interest rates and increased capital costs may force even modern, well-invested sawmills to shut down, rather than just older, inefficient facilities.