World News | 9
Stora Enso signals Middle East conflict impact in Q2
Leading European sawmilling giant Stora Enso has signalled that Middle East conflict impacts on costs will become more visible during Q2.
Stora Enso, which has about 19 global sawmills and wood product manufacturing facilities, has posted a Q1 operating loss of €-11m in the division that includes wood products, compared to an operating profit of €34m in Q1, 2025. Sales were virtually identical in the two comparative periods, with Q1, 2026 at €641m.
Group sales increased by 5% to €2.358bn (Q1 2025: €2.254bn), mainly due to higher deliveries in all segments except Biomaterials. Sales prices and foreign exchange rates had a small positive impact on sales. Group profits before tax were €43m (Q1 2025: €132m). The company said market conditions remain challenging, with low consumer confidence.
“In the early part of the quarter, we saw a positive development in demand,” said Hans Sohlström, President and CEO of Stora Enso. “However, towards the end of the quarter, geopolitical tensions escalated with the outbreak of the war in Iran. While the impact on the first quarter’s performance
Stora Enso Varkaus sawmill in Finland
was limited, these developments have increased uncertainty and are expected to affect the operating environment going forward.
“The situation adds to volatility and raises the risk of higher cost levels, particularly related to energy, logistics and other variable costs such as chemicals, with effects becoming more visible in the
second quarter.”
Stora Enso’s strategic review of its Central European sawmills and building solutions operations is ongoing. The company also continues the preparations for the separation of its Swedish forest assets business into a new publicly listed company, expected to be completed during the first half of 2027.
Timber group calls EUDR simplification inadequate in curbing “ramping bureaucrcacy”
European Commission attempts to retrospectively curb “rampant bureaucracy” in the EUDR are “inadequate”, according to Germany’s leading timber industry organisation.
The German Sawmill and Timber Industry Association (DeSH) says the new simplification package for the EU Deforestation Regulation (EUDR) falls far short of the goal of genuine simplification and continues to create uncertainty rather than clarity in practice.
Instead of solving structural problems, DeSH says the Commission is attempting to retrospectively curb the rampant bureaucracy with ever-new guidelines, FAQs, and exemptions. “The fact that the FAQs are already in their fifth version speaks volumes,” said Julia Möbus, Managing Director of DeSH. “Ninety-five pages are dedicated to explaining detailed questions – this hardly
DeSH MD Julia Möbus calls EUDR simplification moves inadequate
constitutes a genuine simplification.” Ms Möbus says the goal of the EUDR – to combat global deforestation – is correct and important. “However, the EU has taken a wrong turn on the way there. The regulation has developed into a bureaucratic behemoth
that poses enormous challenges for the companies affected.”
DeSH says the package does contain some useful approaches, such as clarifications regarding the scope of application or adjustments to IT systems. But it maintains their impact remains limited and falls short of noticeably reducing the fundamental burden on businesses. Instead, additional guidelines and interpretive aids create new ambiguities, particularly regarding the practical implementation of the requirements.
“The association therefore continues to call for fundamental improvements to the EUDR. These include, in particular, a significant reduction in bureaucratic requirements, practical solutions for implementation in the supply chain, and genuine risk-based approaches that adequately consider regions without deforestation risk.”
www.ttjonline.com | Summer 2026 | TTJ
World News
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