Holmen, one of Sweden’s leading forest products manufacturers, is scaling back timberproduction in southern Sweden in response to volatile log prices and supply constraints. The company’s wood products division achieved a H1 operating profit of SEK 20 million, bolstered by higher selling prices, although escalating log costs and a prolonged shutdown at the Iggesund Sawmill partially offset gains. Deliveries of wood products declined by 5 percent in Q2 compared to Q1, amounting to 671,000 m³ versus 698,000 m³ in the same period of 2024. Despite weak demand across the construction sector and fierce competition for raw materials, Holmen managed to maintain profitability thanks to its integrated production model. The company also noted that while wood product prices remained seasonally stable, rising log prices in southern Sweden continued to pressure margins.
