Review by the President and CEO

We are living in times of uncertainty and rapid changes. Russia’s attack on Ukraine has led to several changes in Metsä Group’s operations. We have discontinued our wood supply from Russia, our sawn timber production in the country and the sales of paperboard and tissue papers to Russia and Belarus. The increase in European energy prices will have a considerable impact on the cost structure and profitability of tissue paper production in Central Europe. We continue to prepare for a disruption in Russian energy supply in our operations.

Despite the geopolitical situation and the lingering coronavirus pandemic, Metsä Group reached a very good result in the first quarter. Key elements included the continued strengthening of the paperboard market and the rising trend in pulp prices, which began in late 2021. The demand for sawn timber, LVL and plywood remained strong. Metsä Tissue’s profitability suffered from the rapid cost inflation caused by energy prices, while the demand for products remained normal.

Metsä Group’s investment projects have progressed as planned, although cost pressure remains high. The Rauma sawmill investment has proceeded to the equipment testing phase. The goal is for the sawmill, as well as the renewed recovery boiler in Husum, to be in use in the second half of the year.

Metsä Group aims to process Finnish wood into products that people all around the world use in their daily lives. Operational development spanning the entire value chain, from the forest to customer support, as well as investments in production plants offering the highest resource efficiency in the field are our ways of securing the profitability.

Ilkka Hämälä
President and CEO
Metsä Group