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April 6, 2020

Södra Wood to cut total production by 25%

Södra Wood to cut total production by 25%

Södra Wood is implementing temporary partial furloughs at its production facilities in Mönsterås and Orrefors due to a reduction in demand in the UK and the Republic of Ireland during the ongoing pandemic. Södra Wood Ltd in the UK and the production facility in Hamina, Finland, may also be affected by the decision.

“We have noticed a sharp decline in demand in the UK and the Republic of Ireland in the last week. As a result, we are quickly adapting our production to maintain a healthy balance between supply and demand. The ability to implement temporary furloughs will allow us to quickly increase production again once the demand begins to increase again,” said Jörgen Lindquist, President of the Södra Wood business area.

A partial furlough means a reduction in working hours for Södra employees at the affected facilities. The Swedish government has announced that they will provide financial support to compensate for the reduced hours. Södra Wood’s total production will be temporarily reduced by 25 percent. Considering the rapid changes that we are encountering in our operating environment, the rate of production will be constantly under review.

“We are entering this uncertain situation with stock levels that are currently well balanced. Aside from the UK, demand is steady in our European markets and we are seeing positive signs of a recovering Asian market. At the same time, we are seeing higher than average levels of absences among staff which has impacted our production. These furloughs are being implemented as a result of the situation in the UK. All other facilities that do not deliver to the UK will maintain normal levels of production until further notice,” concluded Lindquist.

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