At the top of the list of challenges is the war in Ukraine, which has disrupted trade across Europe. Added to this is the conflict in the Middle East, which has complicated shipping routes. Attacks on container vessels have forced major shipping lines to take longer, costlier detours around the Cape of Good Hope instead of the Suez Canal. Deliveries are delayed, and costs are rising.
At the same time, the EU is driving ambitious climate goals and regulations that directly affect forestry. Questions around carbon storage and limits on harvesting volumes could, over time, impact raw material availability in Europe. On top of this comes a more protectionist trade policy from the US, where new tariffs on pulp and board are already in place, with further measures against European timber on the horizon.
A Pressured Market
Nature itself adds to the challenges. Bark beetle infestations and storms in Central Europe have altered raw material availability. In some regions, spruce is in short supply, forcing shifts in sawmill production. Meanwhile, Sweden has had a year of stagnant GDP. Falling inflation and lower interest rates offer some relief, but the economy remains sluggish.
Norra Timber’s Path Forward
In such a climate, a clear strategy – and sticking to it – is essential. For Norra Timber, the Nordic market is the foundation. A large share of sawn timber is sold within the region, where transport routes are short, currency exposure is limited, and customer relations are close. This makes the cooperative less vulnerable than players heavily reliant on global exports.
Norra Timber is also investing in technology that allows for better optimization of logs. With advanced sorting and scanning, products can be tailored precisely to customer needs. That creates long-term business, stronger customer relationships, and greater willingness to pay. On a market where volumes are under pressure, efficiency and customization are key to staying competitive.
Wars, trade politics, and EU regulations are factors beyond our control. What we can do is continue to develop our operations, streamline our processes, and stay the course with a strategy that works. Norra Skog’s Nordic focus gives us a stronger position than many others. We are not sailing unnoticed through the storm – but we have a steady course and a vessel built to last.
Erik Eliasson, Sales Director at Norra Timber.
