The Competitiveness of Finnish Sawmills Has Weakened Continuously

The competitiveness of Finnish sawmills has weakened continuously since the beginning of this year and their market share has decreased. Further production losses are also feared. In the view of CEO Kai Merivuori of the Finnish Sawmills Association, a body representing independent mills, the situation is causing concern. “Our cost pressures have not decreased. Problems persist in wood procurement and now it seems the construction industry is slowing down, ” says Merivuori. He adds that expanding the business is nearly impossible in the absence of information about the availability of wood on the market and about its price -- though there's enough wood in Finnish forests. The Sawmills Association also points out that wood and transportation costs in Finland are higher than in competitor nations such as Sweden and Germany ”Finland is an island and we are further away from our markets. This is a clear edge for our competitors, ” explains Merivuori. “Sawmills a good indicator of trends” According to Merivuori, sawmills serve as a good indicator of economic trends and point to upcoming trends. His view is shared by Jussi Mustonen, CEO of the Confederation of Finnish Industries. Mustonen believes the situation facing sawmills reflects prevailing economic winds. Mustonen says that the climate is becoming constantly bleaker in industry and business. Uncertainty is on the rise. ”Prospects have systematically darkened. The most recent figures for Finland show that a recession is close at hand, ” observes Mustonen. Source: yle.fi