Finnish sawmiller Vapo Timber has declared a €9.3m operating loss for 2011 (2010: € 7m profit). Vapo said its raw materials costs increased by 6% during the year, while the average selling price fell by 7%. Sawmill cost-effectiveness fell towards the end of 2011, with production cutbacks being introduced in two mills last December. The division’s sales totalled €121.3m (2010: €135.4m). Production reached 533, 000m³. A new production line at Hankasalmi should improve efficiency and cost-effectiveness in the division going forward. Meanwhile, Vapo Group, which also includes biofuels, energy generation and peat production, recorded an operating loss of € 41.9m, principally due to impairments in wood pellet operations totalling €33.7m. Poor conditions in the wood pellet market led Vapo to close three wood pellet plants. Its wood pellet operations recorded operating losses of € 7m. Source: ttjonline.com
Source:
http://www.ttjonline.com/story.asp?sectioncode=17&storycode=69719&c=2
