“Growth in total demand is expected to be small at best in the main markets,it said in its annual financial results.

“Cost management and adjustments in production may be necessary.”

The wood products division recorded an operating profit of €3m from sales of €939m.

As a group, Metsäliitto recorded a €98m loss before tax (including non-recurring items), compared to a profit of €345m a year ago. For the fourth quarter of 2011 the loss was €228m (2010: €52m profit).

Metsäliitto Group is also changing its name to Metsä Group and adopting a new corporate identity, which involves a new logo – a moose head nobly carrying a forest in its antlers and the word Metsä (Finnish for forest).

The new identity does not affect the group structure, although the wood products division – Metsäliitto Wood Products Industry – will now be known as Metsä Wood.