Following Sweden’s VIDA Group’s announcement of production cuts in December, Sodra Wood will also temporarily adjust its timber production capacity to achieve a balance between production and customer demand. In December, Sodra Wood's sawn timber output is expected to decrease by 60,000 cubic meters.
In 2020 and 2021, the sawn timber market continues to be strong. However, since the third quarter of 2021, the building material trade inventory level has rebounded, and the sales of wood products have recovered to a level slightly better than in 2019 but slightly lower than in 2020. The demand for wood in the building materials trade will decline.
Sodra Wood decided to temporarily reduce its sawn timber output by a total of 60,000 cubic meters in December to achieve a balance between output and customer demand.
As the most sustainable building material, wood continues to grow in the Swedish market, and the demand for Sodra Wood's products is also experiencing long-term growth. Although Sodra Wood decided to adjust its production capacity to achieve a balance between production and customer demand. But this is only a temporary measure and will take effect during December.
Within a few months, the company expects customers' inventories to return to normal levels, and for most of next year, Sodra Wood expects that demand will support the company's sawmills for full production. It is not only limited to the Swedish construction industry, but the continuous growth of demand in overseas markets including Europe has provided good support for the operation of the company's production capacity.
