Production adjustments to manage inventories
All but one of Södra Wood’s sawmills will take extra downtime to manage their inventories in line with the market situation
By the end of December, Södra Wood will have reduced production by a total of 67,000 cubic meters in order to manage stocks. While the action has been assigned to November and December, the majority of the stoppages are planned in connection with the Christmas and New Year holidays. Production in October this year had already been lower than in October 2020.
The reduction corresponds to three percent of Södra Wood's annual production and affects all sawmills except for Orrefors. Each individual sawmill will make the best use of the stoppages for training, preventive maintenance and adjusting the level of intermediate storage.
Production Director Patric Olsson said: “While we see demand returning to normal, customers continue to correct their stock levels and we have chosen to take some extra production curtailments to ensure our inventories are at the right level through the quieter winter period.”
Meanwhile, Södra Wood continues to invest in its sawmills, with several digital projects underway. “2022 will be a year in which we invest in infrastructure to pave the way for stronger digitalisation,” said IT Manager Cristian Brolin. “It's about really good networks, it's about the ability to process information in a uniform manner, locally by unit, and it's about strategically preparing ourselves to for comprehensive digitalisation.”