04 June 2009

Metsäliitto limits production at all of its sawmills

Metsäliitto is continuing its efforts to improve the profitability of sawmill operations and has started the statutory labour negotiations at all of its sawmills regarding the limitation of production.
"The demand for sawmill products has remained low, and sawing with these prices of sawn timber is very unprofitable. As timber with competitive prices in comparison to market prices is not yet sufficiently available, we must be prepared to adjust our production to lower volumes to improve profitability," says Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry.
"In Metsäliitto, we have sought the balance between competitively priced logs and the amount of sawmill production for the whole beginning of the year. Metsäliitto Wood Supply has been very active in purchasing log timber and has achieved a very high market share. Unfortunately, the volume of timber trade has not been sufficient - especially with logs it should now become more lively," says Juha Mäntylä, Group Executive Vice President, Metsäliitto Wood Supply.
The notice concerning negotiations covers a total of 380 employees. Possible temporary layoffs are planned and will be realised as extensions to summer holidays, and, if necessary, later this year lasting a maximum of 90 days.
"We have adjusted production at all of our sawmills for a long time. We are constantly monitoring the development of the market situation and business environment, and the need for temporary layoffs in the future will also be estimated according to the situation," says Salvén.