The Financial Problems Facing The Central European Sawmill Industry Since 2010

The financial problems facing the Central European sawmill industry since 2010 have continued during 2011 as well. Additional major players in the sector reported significant financial problems early in the year, which sometimes led to changes within the affected companies. As such, individual plants or subsidiaries were shut down, sold or put up for sale as a part of the necessary restructuring efforts. In various cases restructuring is continuing this year as well. In fact, the sawmill companies’ financial situation is likely to deteriorate further this year, against the background of the increasingly diverging developments of roundwood procurement costs on the one hand and softwood lumber sales prices on the other hand since mid-year. However, the effective consolidation in the Central European sawmilling industry expected by industry representative has failed to materialise also in 2011. Source: euwid-wood-products.com