Sodra Terminates Furlough Scheme at its European Sawmills

SEATTLE (Scrap Monster):  Forestry major Sodra announced its decision to put an end to the furlough scheme introduced at certain European sawmill operations in response to the weak demand on account of ongoing pandemic restrictions.

According to Jörgen Lindquist, President, Sodra Wood noted that the company had decided to introduce a furlough scheme at the area sawmills in the beginning of April when the entire UK region was closed. The gradual reopening of the UK market has resulted in new business opportunities. Consequently, the company has decided to resume normal production rates at the sawmills in Orrefors, Mönsterås. Sodra is still waiting to restart production at the Hamina, Finland sawmill, he added.

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Furthermore, Lindquist noted that Monsteras was already low-staffed even before the crisis. Upon scaling up the mill to full production, it intends to recruit nearly 6 new employees.

Meantime, the company reported Q1 2020 results in line with expectations. The production rates at facilities maintained strong levels, despite dramatic changes in conditions in the wake of the pandemic. It reported operating profit of SEK 227 million in the first quarter of 2020, corresponding to an operating margin of 4%. The net sales amounted to SEK 5,576 million. The core products reported favourable demand during the quarter.