Holmen carries out active and sustainable forestry on over one million hectares of its own productive forest land. The annual harvest is 3 million m3. Holmen also produces wood products for joinery and construction at three sawmills and the byproducts are used in the group’s paper and paperboard mills. Annual production volume is almost 1 million m3.
The company report stated “Demand for logs and pulpwood was good in 2019. Prices of logs decreased in southern Sweden as a result of high supply due to the bark beetle infestation.”
“Although there is currently plenty of raw material, a growing forest products industry is consuming more than can sustainably be harvested in Sweden, pointing to rising prices over time.”
“High supply of wood products due to good availability of raw materials in Central Europe resulted in a significant drop in prices in 2019. We are now seeing signs of supply decreasing and of the market possibly starting to stabilise. Raw material costs decreased in the quarter but not enough to offset low selling prices, resulting in continued weak earnings.”