In response to the expanding bark beetle calamity in Central Europe as well as in Sweden, Bergs Timber has announced that it will cut its lumber production. Despite the high demand, the large oversupply leads to price pressure, especially for low-grade spruce assortments.
In the fall and winter, Bergs Timber will therefore reduce its production in the Swedish sawmills by about 35,000 m3, which corresponds to about 6% of the Swedish annual production and about 4% of the annual production of the group. This should normalize the finished goods inventory and improve the market mix. In parallel, the sawmill in Orrefors, where only pine was produced in recent years, will cut spruce beetle wood in winter to a high degree.
The Baltic sawmills of the Bergs Group are not affected by the production cut.
The headquarters of Bergs Timber will be relocated in January 2020 from Mörlunda to Vimmerby. It will then house the Group Executive Committee and the Finance Department for the Group as well as the headquarters of the Swedish Business Unit. At the same time, the Stockholm office of the group will be dissolved.