Holmen cuts sawmill output as Middle East disruption drives up costs

Holmen AB is reducing production at its Bygdsiljum sawmill as disruptions to trade with the Middle East push up freight costs and limit export flows. The mill, part of Holmen Wood Products, will scale back output by around 30,000 m³ of lumber. The move is intended to limit losses as shipments to key markets become increasingly difficult and expensive. Holmen has significant exposure to the Middle East, and recent developments in the region are affecting both logistics and pricing. Shipping companies have raised rates due to higher risks and fuel costs, while traffic into the Persian Gulf ...