Bergs Timber has previously announced the closure of Gransjö sawmill in Sweden. Similarly, production as a result of the ongoing corona crisis has been reduced at other Swedish sawmills and at its Estonian sawmill. The closure of Gransjö sawmill has proceeded according to plan and the sawmill production will cease during April.
“Demand for sawn timber is good for several important markets and we see some improvement in the English market. Our stocks are in balance and order intake has improved. Demand for wood products is normally seasonally high during the 2Q,” the company reports.
At Swedish sawmills, implemented short-term work will be terminated and production will return to normal pace from May 4. Estonian sawmill has produced in one shift during April and returns to two shifts from 4 May. Latvian sawmill Vika Wood has not been affected by production curtailments.
“After a decline in the second half of March and during April, we now see that demand is improving and that order intake is increasing until the holiday period. After the production curtailments that have been implemented, we have balanced inventories and it feels positive that we are now returning to normal production levels. The long-term effects of the ongoing corona crisis remain difficult to assess,” says Peter Nilsson, President and CEO of Bergs Timber.
Bergs Timber primarily produces and sells structural timber in spruce and pine for several different markets in Europe.