ukrainian news - 01.03.2007

Southern Sweden threatened by a shortage of timber

All forecasts indicate that the sawmills of Southern Sweden will be faced with a serious shortage of timber in the next few years. Forest owners in that region can expect record prices for the heavy timber that still remains after the storms in 2005 and 2006 and that has not been damaged by bark beetles.

At the moment sawmills are very profitable and they reinvest their profits for increasing production capacity. Danske Bank forecasts that planned and already realized investments will result in a timber shortage of approximately four million cubic meters per year.

A consolidation of the sawmill business seems inevitable. Dependence on imports is more hazardous than ever. Sawing more slender timber gives additional competitiveness in relation to the pulp and energy sectors. In its latest news release Danske Bank says that sawmills must invest in increasing their degree of processing rather than in production volume.

www.nordicforestry.org


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