The international market situation for wood products is contributing to a strong start for Moelven in 2022.
Moelven had a turnover of NOK 3,945 million in the first quarter of 2022, an increase of NOK 763 million compared to the same period in 2021. The operating profit from the first three months of the year is NOK 732 million, an increase of NOK 290 million compared to the same period last year.
“ The demand and price situation both at home and abroad are defined by the international market for wood products. The international demand was very strong throughout the winter, and there has been a further imbalance in the market as a result of the war in Ukraine. The loss of large quantities of Russian timber as a result of sanctions means that the market must now look elsewhere for these products, and this affects the balance in the market,” says Morten Kristiansen, CEO of Moelven Industrier ASA.
The Moelven Group strongly disapproves of the Russian invasion of Ukraine, and has put a stop to all trade with Russia and Belarus. Moelven has only had a limited number of products and deliveries originating from these countries.
Moelven is well equipped to handle the high demand, and has plenty of timber in both Norway and Sweden to cope with future production.
The first months of the year represent the strongest first quarter Moelven has ever delivered. Nevertheless, the CEO has a wait-and-see attitude with regard to the rest of the year.
“We have gone straight from a pandemic to a turbulent global situation with war in Europe, which is why it is difficult to define a normal situation. This makes it difficult to say anything clearly about the time to come," says Kristiansen.
While international demand remains strong, there is much evidence that the high price levels of a whole range of building materials and other input factors may negatively affect parts of both the consumer and professional markets in Scandinavia.
“We are in the middle of a cost merry-go-round, of which it is difficult to see the consequences. At the same time as Moelven is experiencing strong earnings, the industry is upgrading and investing internationally. This is also a race in which Moelven is participating so as to maintain our competitiveness going forward," says Kristiansen.
Sale and establishment in Denmark
In the first quarter Moelven Danmark A/S was sold to Frøslev Træ Holding A/S. Moelven Danmark A/S was a total supplier of wood-based products to the Danish construction industry, and had 20 employees. Moelven continues to maintain the sale of wooden boards, sawn timber and planed building wood through the newly established company Moelven Danmark Sales A/S.