world news - 04.11.2004

Paper and paperboard production in Finland rose by 11%, sawn wood was down 1.5% in 3Q 2004

In the third quarter of 2004 the global demand for paper and paperboard continued to develop favorably. Spurred by stronger demand, paper and paperboard production in Finland increased by nearly 11% compared with the year before.

The fastest growth was for fine paper, with production rising by over one-fifth. Paper and paperboard production amounted to 3.7 million tons in the third quarter. This was more than in any single quarter in the past. Production in January-September totalled 10.5 million tons, up nearly 8% over the year before.

The operating rate in the paper industry rose to 95% in the third quarter. This was 4 percentage points higher than in the second quarter. The operating rate in the third quarter of 2003 was 90%.

Chemical pulp production increased by 2% in the third quarter, due to a decline in pulp exports. Domestic consumption of pulp grew at the same pace as paper production. Mechanical pulp production was up 8% over the year before, in line with the production of mechanical paper grades.

Sawn wood production totalled nearly 2.9 million cubic metres in the third quarter. Compared with the third quarter of 2003 production was down 1.5%. In January-September production totalled 9.9 million cubic metres, about the same as the year before.

Plywood production in the third quarter was up more than 5% compared with the year before. Production in January— September totalled 1 million cubic metres, up nearly 3%.

In the third quarter of 2004 total production in the forest industry in Finland was nearly 8% higher than the year before. Pulp and paper production was up more than 9% while production of wood products was up less than 2%. In January-September total forest industry production was 6% higher than the year before on

Finnish Forest Industries Federation.


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