Although there is no prospect of a rapid improvement in the end-product market, we are buying wood as usual. In particular, we are interested in felling sites on well-bearing soils, typically harvested in the summer. There is also demand for regeneration felling on soils of a lower bearing capacity to be harvested in the winter.
Wood prices in Finland have fallen because the industrial production of many companies has become loss-making. Yet prices are at a higher level than we were accustomed to in the 2010s and 2020s before the war in Ukraine. In my opinion, also regarding the final product market, wood prices are favourable for forest owners.
In the Baltics and Sweden, the price for pulpwood has decreased during the autumn. In the Baltics, the roadside prices of overbark pulpwood are below Finnish prices; in Sweden, they are a little higher.
Due to weakened profitability in the long term, Metsä Group conducted statutory negotiations in October–November concerning all its business areas and Group functions. As a result of the negotiations, 520 permanent positions will end, and the employment contracts of a maximum of 440 employees will be terminated. The measures do not include permanent mill closures.
There will also be personnel reductions in wood supply and forest services, but they will not have a long-term impact on cooperation with our owner-members or other stakeholders in wood supply and forest services. Our goal is to continue to serve our owner-members well, to maintain our reputation as the best partner that offers the best customer experience for forest owners, and to be the preferred partner in forest business, which is the current situation.
We are changing how we operate as a buyer of contracting services, and we are aiming for improvement in cost-efficiency and productivity throughout the supply chain. Our goal is to increase the size of harvesting and transport contracts to more than 300,000 cubic metres per year. Of course, we will make sure that smaller entrepreneurs also have the opportunity to become part of the network. Our intention is to conclude the first new contracts in the early summer of next year. The plan is to have the entire reform implemented by the summer of 2027. The goal is for partners to take a leap towards more professional management and responsible operations.
In recent weeks, Greenpeace has been campaigning on old-growth forests. Our name has also come up. Greenpeace does not recognise the Government’s criteria for old-growth forests or the definition of a primary forest. Metsä Group does not supply wood from old-growth forests or primary forests as defined by the Government's criteria. In all forestry measures, we comply with the certification criteria. Compliance with the certification criteria is monitored both in Metsä Group’s audits and in audits carried out by a third party. My more detailed comments can be found in the Forest Owner podcast.
The Ministry of Agriculture and Forestry is implementing a programme aimed at strengthening forest carbon sinks. This is likely to cause legislative amendments affecting the density of forest cultivation and the time limits for regeneration. Planning for the national implementation of the EU Restoration Regulation will continue at the ministry. For summer felling, the ministry is preparing more detailed instructions on how to take bird life into account.
I offer my warmest thanks to our owner-members for their cooperation, and I wish you a peaceful Christmas.