Metsäliitto suspends operations at Karihaara sawmill until further notice
07/04/2009
Metsäliitto, continuing to take measures in order to improve the profitability of its sawmilling operations in the increasingly difficult business environment, will suspend operations at the Karihaara sawmill, located in Kemi, Finland, until further notice. Temporary layoffs due to the suspended operations will affect the majority of the sawmill personnel, which totals 50 people.
"The demand for sawn timber products has weakened rapidly after the deepened world economy recession slowed down the building and construction industry. In this very difficult business environment, we must focus on decreasing unprofitability and reduce our sawing volume", says Ole Salvén, Group Executive Vice President of Metsäliitto Wood Products Industry, Finnforest.
"The operating environment of the Finnish sawmill industry is now extremely difficult. Our main problem is the weak cost competitiveness in the export market, caused by the relatively higher logistics and wood raw material costs. Moreover, the competition is tightened by the overcapacity in the European sawn timber market, and the devaluation of the Swedish krona.
The operations at the Karihaara sawmill will be suspended by the end of June. The continuance of the sawmill's operations will be re-evaluated according to how the market situation develops.
The Karihaara sawmill has been Metsäliitto's northernmost sawmill. "Although our sawn timber operations in Northern Finland are now suspended until further notice, Metsäliitto's mission remains unchanged - Metsäliitto will continue to procure and market its owner-members' wood in a competitive way," emphasises Juha Mäntylä, Group Executive Vice President of Metsäliitto Wood Supply.
The Karihaara pine sawmill has produced over 100,000 cubic metres of sawn timber a year. Approximately 70 per cent of the production has been exported, about 20 per cent delivered to the own upgrading of the Metsäliitto Wood Products Industry, and 10 per cent sold to the Finnish market.
Further information:
Ole Salvén, Group Executive Vice President, Metsäliitto Wood Products Industry, Finnforest, tel. +358 10 465 4870
Juha Mäntylä, Group Executive Vice President, Metsäliitto Wood Supply, tel. +358 10 465 4244
Johanna Kankkunen, Metsäliitto Group Communications, tel. +358 50 350 4005