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Södra Timber to Limit Sawmill Production
Stockholm, Sweden, 26 October 2011 -- Södra Timber will be limiting production at two sawmills for one week this autumn and at a number of sawmills over the Christmas and New Year break.

"Demand for timber products has fallen, and we have profitability problems. Production capacity must be adapted to fit in with this reduced demand so that we can create the conditions for a price level which will improve our margins," said Peter Nilsson, CEO of Södra Timber.

Södra Timber has decided to shut down production at Långasjö and Ramkvilla in week 44. Kinda, Unnefors, Ramkvilla, Orrefors, Torsås, and Långasjö also will stop production between 23 December 2011 and 09 January 2012. This is expected to reduce production by approximately 40,000 cubic meters of product. Employees will be offered holiday during these periods.

"These measures will allow us to start the year with balanced stocks, something we must have if we are to see a better market for timber products," Nilsson said.

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