24 October 2024
The economy continued to be weak in the third quarter of 2024. In the wood market, trade was normal, and prices remained at a record high, compared with figures across the last two decades. A high cost level combined with low demand across the board resulted in a weak result for the third quarter. The quarterly result was significantly improved by the business interruption insurance compensation for the accident at the Kemi bioproduct mill, which was allocated to the first half. Negotiations on the final insurance compensation are still underway, but EUR 67 million in compensation was recorded for the third quarter.
The slowdown in the construction industry continues, and there are no signs of a change in the demand for sawn timber and plywood. Demand for Kerto® LVL has remained strong, proving the product’s competitiveness in construction industry solutions.
In China, the pulp market picked up in September, and prices began to gradually increase in softwood pulp trade. Demand remained stable in the European pulp market even though prices continued to decrease, still remaining higher than the price level in Asia. In Europe, the paperboard market continues to be affected by Asian paperboard imports to regions neighbouring the EU such as Türkiye. In the US, the market situation has remained slightly stronger than in Europe. As is typical of consumer products, demand for tissue papers has been stable, and profitability has remained at a reasonable level.
During the autumn, heated discussions have taken place concerning the forest industry’s ability and willingness to comply with forest-related legislation, certification schemes and requirements specified by the companies themselves. Companies in the industry have worked individually, jointly and in cooperation with the authorities to find ways to prevent mistakes and deviations. Naturally, Metsä Group is committed to continuously improving its business to safeguard the ecological state of forests and waterbodies, an example of this is the principles of regenerative forestry introduced in 2023. However, if a mistake occurs, we are fully transparent about it. From now on, we will publish any deviations from the law and certificates on our website.
Metsä Group’s numerous development and investment projects are progressing as planned. The expansion of the Mariestad tissue paper mill’s new production line has progressed to the initial stage of equipment installation. The first stage of the modernisation of the Mänttä tissue paper mill’s converting line has begun. Infrastructure planning for the new tissue paper mill in the UK is moving forward. Equipment manufacture for the Kerto LVL mill under construction in Äänekoski has begun mainly at Finnish machine shops. We are con-structing a demo plant for the recovery of lignin in Äänekoski and are initiating preparations for carbon capture pilot equipment for test runs that will be launched in the spring at the Rauma pulp mill. We have initiated the development programmes at the Simpele paperboard mill and are planning the next steps for improving competitiveness at the Kyro and Husum mills.
The pre-engineering project for the MuotoTM 3D mill is nearing completion, and marketing of the products to be produced at the demo plant has begun. The Kuura® textile fibre is produced at the demo plant for various end uses. Plans for a commercial mill are underway.
Metsä Group’s mission is to add value to the forests of the owner-members of the Group’s parent company Metsäliitto Cooperative. Carefully and sustainably managed, our owners’ 5.5 million hectares of Finnish forest make an important contribution to the success of the Finnish economy. The only way we can handle the challenging task of coordinating and promoting the economic, ecological and social roles of commercial forests is by engaging in continuous, long-term and future-oriented development work.
Ilkka Hämälä
President and CEO
Metsä Group
