Swedish sawmiller Rörvik Timber to increase shifts at some of its seven sawmills to meet growing demand, expects shipment volumes to the US, North Africa, the Middle East and China to increase in 2014
February 28, 2014
(Industry Intelligence Inc.)
– Huskvarna, Sweden-based sawmilling company Rörvik Timber is increasing shifts at some of its sawmills, according to a Feb. 28 report by U.K. timber magazine TTJ.
The company, which operates seven sawmills, said it would move to two shifts at its mills in Boxholm and Sandsjöfors at the end of Q1 to meet demand in several key markets. Operating hours will also be extended at Rörvik's Tvärskog mill.
Rörvik recently reported an annual operating loss of 72 million Swedish kronor compared with a loss of 135 million kronor in 2012, on sales down to 1.28 billion kronor from 1.48 billion kronor in 2012.
Rörvik attributed the decline in its 2013 results to low capacity utilization of 45% in the first nine months of the year, and continued high raw material prices in relation to selling prices, reported TTJ. But the group noted its performance had improved during 2013, with capacity utilization reaching 65% in Q4 and operating loss dropping to 10 million kronor.
In 2013, total group annual production was 445,000 m3, down from 538,000 m3.
Commenting on its annual results, the company said increased prices and delivery volumes, combined with low stock levels, indicated that the sawmill industry had passed the bottom of the worst recession since the 70s. Rörvik noted that it expected markets in the U.S., North Africa, the Middle East and China to improve, and that markets in the U.K. and Germany were showing positive development.
The primary source of this article is TTJ, Sidcup, U.K., on Feb. 28, 2014.