Forest industry: Economic trend has shifted for the better
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The forest industry has turned from recession to an upswing, says Finnish Forest Industries Federation chief economist Esa-Jukka Käär. Käär feels it is justifiable to say the forest industry has passed a turning point in the cycle.
"We are now at the beginning stages of an upswing", Käär says.
Käär's opinion is backed up by the Forest Industry January-June statistics, according to which production has increased significantly from last year's corresponding six-month period.
In the spring, the paper industry ran at 91% capacity. "That is not bad!" remarks Käär.
Between January and June 2004, 6.8 million tons of paper and paperboard were produced, which indicates a 6% increase from the year before.
Lumber production, with seven million cubic metres of sawn timber, also exceeded last year's comparable figures.
Fine paper production had the fastest growth - nearly 15 percent - during the first half of the year.
The only negative trend was in the production of newsprint, the output of which was reduced by a quarter. This is because forestry companies have relocated the production of this type of paper to Central Europe, while old paper-machines in Finland have been shut down.
According to recently published forestry companies' interim reports, factory owners have compromised their margins, for despite the increased production, the net sales figures have remained unchanged or in some cases have even dropped slightly.
"From the growing production numbers and the increase in exports, it can be deduced that demand has increased. This will soon be reflected in mill prices as well", Käär says.
Helsingin Sanomat
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| 10.8.2004 - TODAY |
 Forest industry: Economic trend has shifted for the better |
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