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April 28, 2020

Bergs Timber resumes normal production; cites improved demand in main markets

Bergs Timber resumes normal production; cites improved demand in main markets
  • Bergs Timber to resume normal production at its Swedish and Estonian sawmills on May 4, citing good demand in important markets, and improvement in English market; Vika Wood in Latvia was not affected by pandemic-related curtailments

Bergs Timber has previously announced the closure of Gransjö sawmill. Similarly, production as a result of the ongoing coronavirus crisis has been reduced at other Swedish sawmills and at the company's Estonian sawmill. The closure of Gransjö sawmill has proceeded according to plan and the sawmill production will cease during April, the company reports.

According to Bergs Timber, demand for sawn timber is good for several important markets and the company sees some improvement in the UK market. The company's stocks are in balance and order intake has improved. Demand for wood products is normally seasonally high during the second quarter.

At the company's Swedish sawmills, implemented short-term work will be terminated and production will return to normal pace from May 4. Bergs Timber's Estonian sawmill has produced in one shift during April and returns to two shifts from 4 May. The company's Latvian sawmill Vika Wood has not been affected by production curtailments.

''After a decline in the second half of March and during April, we now see that demand is improving and that order intake is increasing until the holiday period. After the production curtailments that have been implemented, we have balanced inventories and it feels positive that we are now returning to normal production levels. The long-term effects of the ongoing coronavirus crisis remain difficult to assess, says Peter Nilsson,'' President and CEO of Bergs Timber.

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