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world news - 05.05.2003

Forest Industry Production in Finland in January-March 2003

The threat of war and then the war in Iraq further weakened the development of the world economy, keeping demand for forest products slack. Consequently plenty of capacity remained unused in the forest industry both in Finland and in several other producer countries during the first quarter of 2003.

In the paper industry the market situation remained fairly difficult. In Finland the operating rate of the capacity in the paper industry averaged 88% in January-March (87% the year before). The situation varied from one grade to another. Operating rate was higher and the market situation was better for paperboard than for other grades. Paperboard production rose by nearly 6% while paper production on average increased less, by 3% compared with the year before.

Production of newsprint and uncoated printing papers fell compared with the year before while production of other grades rose. All in all paper and paperboard production in the first quarter totalled nearly 3.3 million tons, up 3.5% compared with the year before, mainly as a result of increased capacity.

Chemical pulp production totalled 1.9 million tons, up about 4% compared with the year before. On the other hand, mechanical pulp production fell by 1%.

Sawn softwood production in the first quarter totalled 3.4 million cubic metres, up 2% compared with the year before.

In the first quarter, plywood production was 340,000 cubic metres, as much as 18% higher than year before.

In January-March, the forest industry production as a whole in Finland rose by 1.3% compared with the year before.

Finnish Forest Industries Federation


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