Friday, November 25, 2016
The production of softwood sawn timber, pulp and paperboard witnessed a growth in Finland between the period of July to September compared to the first half of the year. The first six months of the year were also good for pulp and paperboard, largely due to new investments.
Paper production, however, continued to decline. The profitability of sawn timber production was reduced by lower export prices and higher raw material costs. The government must ensure that energy and logistics costs are competitive in Finland and that forest policy is used purposefully to increase the supply of wood in response to the strong growth in demand.
The production of softwood sawn timber grew by 9.2% in the third quarter and amounted to 2.6 million cubic metres. Pulp production also increased substantially and was up 11.1% compared to the corresponding period last year. Forest industry corporations produced a total of 1.9 million tonnes of pulp in July–September.
Paperboard production grew by as much as 17.5% in the third quarter, to 840,000 tonnes, boosted particularly by new investments in the forest industry. At the same time, paper production declined by 5% and amounted to 1.7 million tonnes. Paper production has fallen by 6.1% since the start of the year. Forest industry corporations’ production was 5.1 million tonnes in January–September, but production growth continued in other product categories.
Since the start of the year, forest industry corporations produced 6.5% more softwood sawn timber than in the corresponding period in 2015, for a total production volume of 8.4 million cubic metres. Pulp production increased at almost the same rate, with a year-on-year increase of 6.4% in January–September and a total production volume of 5.6 million tonnes. Paperboard production grew by 10% to 2.5 million tonnes during the first three quarters of the year.
Reasonable energy costs prevent carbon leakage
Timo Jaatinen, Director General of the Finnish Forest Industries Federation, says: “The Government Programme states that industrial costs will not be increased. This is an important policy that must be maintained. Reasonable energy costs, as well as reasonable costs related to raw material use and logistics, are essential for the Finnish forest industry.”
Fair treatment compared to the countries that compete with the Finnish forest industry helps prevent carbon leakage, which refers to the relocation of production operations. It also makes it possible to maintain the targets set for renewable energy. The forest industry produces two thirds of Finland’s renewable energy.
Tags: Finland, forest industry, forests, paper production, paperboard, Pulp, renewable energy, sawn timber, softwood
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