Finland: Corona crisis continues to weigh on the forest industry

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The decline in Finland's forest industry production continued in July – September in all main product groups. Cardboard, sawn timber and pulp held their ground best, but the downturn in paper continued most sharply, according to the Finnish Forest Industry Federation (FFIF) production statistics.

Production in the forest industry decreased in Finland in all main product groups in July – September, as the interest rate crisis still dampened international demand.

The production of paperboard and pulp held its best. Production tonnes of paperboard decreased by 2.1 per cent in the summer quarter and pulp by 2.9 per cent compared to the corresponding period last year.

Demand for packaging boards during the corona pandemic is supported by, among other things, increased online sales and pulp production by strong demand for hygiene products. Demand for various board and pulp products is also expected to grow in the longer term.

“Megatrends are also reflected in production volumes in exceptional situations such as the corona pandemic. In the world of climate change, the forest industry produces solutions when wood-based production is increasingly replacing production based on fossil raw materials, says Timo Jaatinen, CEO of FFIF.

The proliferation of climate-friendly wood construction may also increase sawn timber and plywood production in the longer term, FFIF says. In July-September, sawn timber production remained close to last year's level. The volume of plywood produced decreased more significantly by 16 per cent from last year, which can be partly explained by individual deliveries, as plywood is a small product group in Finnish production.

The slowdown in the economic cycle is most severe for paper production, which has been on a downward trend for some time. In the summer quarter, 25 percent less paper was produced than in the corresponding period last year.

Production of printing and writing papers has fallen most sharply. In January – September, production tonnes of graphic papers fell by 30.4 per cent from last year, compared with a fall of 3.4 per cent in specialty papers. Specialty papers include, for example, label and release papers.

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