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Swedish sawmill cuts production due to Middle East war

Economy & businessEconomy
Key Points
  • A sawmill in Bygdsiljum, Sweden, is reducing production due to the Middle East war.
  • The slowdown equals 30,000 cubic meters of timber, aimed at limiting losses.
  • The company cites shipping issues, including halted traffic and high costs, as key factors.

The sawmill in Bygdsiljum, Sweden, is slowing down production because of the war in the Middle East. The company Holmen Trävaror sees no other way to limit losses. The slowdown corresponds to 30,000 cubic meters of timber, according to a company press release.

Holmen Trävaror does significant business in the Middle East and is affected by the conflict in Iran. Shipping companies have announced price increases due to increased risk of damage and attacks, as well as more expensive fuel. Traffic into the Persian Gulf is stopped, and freight to Saudi Arabia is currently so expensive that the company is temporarily not doing any business there.

Even before the Middle East war, the sawmill was struggling with record-high timber prices and a pressured economy.

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