In Sweden, the forest industry group VIDA AB, a subsidiary of Canada-headed forest industry major Canfor has announced it is reducing the production capacity output of its Swedish operations in response to a downturn in market demand for wood products.
Reduced operating schedules will be effectinve from 12 September, and will result in a 15% decrease in production capacity - anticipated to be in effect through Q4 2022.
"Rising inflation and mortgage rates in Europe, which are expected to persist into the fall, is impacting demand for lumber and as a result we are reducing production capacity. We are committed to continuing to meet the needs of our customers," said Don Kayne, president and CEO, Canfor.
The decrease in production capacity will be achieved through reduced shifts. The Company will continue to assess and make adjustments to operating schedules based on changes in market demand.
VIDA said that it sees no signs that the market and consumption will turn upward in the near future.