Sawmill production in Finland hits decade-low as industry faces economic challenges

The production levels of the sawmill industry in Finland have fallen to their lowest point in over a decade, with output last seen at such lows in 2013. According to the Finnish Sawmill Industry Association, production numbers have declined every year over the past few years.

Tommi Sneck, CEO of Koskisen Oy’s sawmill division, does not anticipate pressures for workforce reductions despite these declines. Just a few years ago, predictions indicated an increase in timber production in Finland, prompting significant investments from sawmill companies. “We have invested nearly 70 million euros in our sawmill over the past couple of years. We are a highly competitive unit. If there is sawing in Finland, I believe it will be at Koskisen,” Sneck stated.

However, Sneck acknowledges that the situation for the sawmill industry is weak from the perspective of the Finnish economy, as timber products rank among the top five export goods.

Furthermore, Virva Juhola, production manager for Metsä Fibre’s Rengon sawmill, reports that operations are still running normally with two shifts, yet the market remains weak due to a downturn in construction. At Versowood, production volumes have remained stable, though earlier strikes reduced overall output. CEO Ville Kopra notes a lack of significant positive developments in international markets, particularly in the United States, China, and Japan.

The sawmill industry indicates that reduced timber consumption highlights not only a poor construction landscape but also a lack of widespread adoption of wood construction despite societal interest. Tino Aalto, CEO of the Finnish Sawmill Industry Association, emphasized the need to manage logistics costs and ensure wood availability for exports to bolster the economy. Sneck expressed hope for increased wood usage in public buildings and suggested regulatory encouragement for timber construction.