Ukraine: An update
“The war in Ukraine continues to have a knock-on effect far beyond the country’s borders. We are doing all we can to ensure that deliveries remain as smooth as possible, but this is a most challenging time for commodities, and we are no exception.”
So says Jonas Larsson, Managing Director at Södra Cell GmbH, adding that the situation is more stable now and disruption has eased compared to a month ago as Södra and its logistics partners have adapted. “Our partners are committed to working with us to find every solution we can. Everyone is pulling together to ensure continuity of supply and we are managing the situation better than we were a month ago.”
However, inflationary pressures are mounting in the face of tight supply for everything from freight to chemicals. “Like most others, we are facing rising input costs on all sides,” explains Henrik Wettergren, Vice President of Södra Cell International. “We are concerned by the disruption to the chemical supply chain, for example, as well the availability of spare parts and even contracted labour. Prices are rising and certain things are becoming harder to procure.
“Organizing essential maintenance shutdowns, for example, are complex at the best of times and you cannot cut corners. We dealt with the issues posed by the pandemic, but now we face new ones. The supply and schedules of some maintenance contractors are being disrupted because many of the skilled engineers are not yet resuming their full travel schedules. Easter is always challenging because subcontractors take holiday, but this year it has been felt acutely.
“In addition, the cost and availability of spare parts are under pressure. Of course, we will never compromise on safety, and we will do everything necessary to maintain safe, efficient production. Everyone is working hard to ensure that it remains business as usual.”