Central European sawmill industry reduces production

Representatives of Central European sawmills anticipate that German and Austrian softwood lumber output will fall by an average of 15-20% in June and July compared with the average of years past in the wake of additional production cutbacks. These estimates indicate that this will result in about 0.9-1.0 million m³ of softwood lumber being removed from the market in both countries if the announced production cutbacks are consistently enforced. More and more Central European sawmill operators announced plans to scale back lumber production even more in the past week or so. For instance, the Austrian firm Mayr-Melnhof Holz is to switch its sawmill in Frankmarkt from two to one shifts until at least the end of June. The Austrian company Pfeifer-Gruppe has also now cut one shift at its mill in Lauterbach, Germany until further notice. Another example is Holzwerke Weinzierl which has revised its plans for June and July and will eliminate a total of 25 individual shifts during this period. Rettenmeier is also presently planning to scale back cutting in the near future. Other companies of varying sizes are also in the process of reviewing their plans for the coming weeks and lowering production.