The Swedish forestry, wood, and paper group Holmen AB, headquartered in Stockholm, announced on August 31 that it would reduce production at its Linghem sawmill from the current 72,000 m3 to approximately 26,000 m3. This represents a 64% reduction.

The company attributes this move to the fact that the economic situation for wood products is the worst it has been in 30 years. Competition for raw materials has intensified, and prices and costs have risen. This current adjustment to market conditions will therefore also involve staff reductions: 18 of approximately 30 employees will be laid off.

Discussions with the union are set to begin immediately.