An important factor behind the turnaround are our investments in new sawmill technology that increases value per log, including computer tomography that is used to analyze the interior of a log before sawing takes place.
“We have shifted focus from volume to value and can now utilize raw material in a smarter way,” says Pär Lärkeryd, CEO of Norra Skog. The results are clear to see, with the sawmills increasing their sawn volumes by five percent, despite a declining market.
Construction in Sweden and the EU has not yet recovered despite lower interest rates and inflation, and China’s construction activity is also subdued. This combination is putting pressure on the prices of sawn timber. However, Norra Skog has maintained its competitiveness through long-term relationships with forest owners and a business model that focuses on forestry management rather than just logging. In addition, the partly-owned Husum Pulp mill has increased profitability despite a challenging market for paper and cardboard products.
Thanks to its strong economic performance, Norra Skog proposes that profit sharing should increase from SEK 65 to 75 per cubic meter, which means the association’s members will collectively share SEK 266 million.
“Through technology investments, a smart business model and a positive economic footing, the association is well-equipped to face the years ahead,” says Pär Lärkeryd.