The European Sawmill Industry: Increased pressure on competitiveness EOS General Assembly , 26 May 2003 in Lahti

On invitation of the Finnish Forest Industries Federation, the members of the European Organisation of the Sawmill Industry, EOS, met on 26 May 2003 in Lahti for their annual general meeting. Mr Hans-Michael Offner, EOS President, presided the meeting.

Developments 2002 and forecasts 2003

With increases in production and consumption, the softwood sawmilling sector could once more report a positive development. Compared to 2001, the production of sawn softwood rose by 2.62% to reach a volume of 72.3 million m³. During the same period, the consumption in the EOS member countries could rise by 1.68% to end at a total volume of 56.9 million m³.

For 2003 one expects a stabilisation or a slight decline of these figures, despite the major economic challenges facing the industry.

The European hardwood sawmilling sector, however, was confronted with major difficulties both on the home and foreign markets leading to a drop in production output by 5.35% compared to 2001. In total 5.56 million m³ of sawn hardwood were produced. This means that over a period of 4 years (1999-2002), the European hardwood production was reduced by more than 1.3 million m³, or more than 20%! Consumption in 2002 fell by 2.7% to close at 7.68 million m³.

This falling trend is likely to continue in 2003, though at more moderate levels, and it not expected to pick up again unless the situation in the main hardwood consuming sectors, such as the furniture and flooring industries, and on the export markets, is impoving considerably.

Challenges 2003

Mid 2003 the European sawmilling sector sees itself confronted with a wide range of important challenges.

In first instance, the continued sluggish European construction market is not immediately giving an impetus to an increased use of wood, though the still quite high consumption rates point towards an increased share of wood in this market.