6.5.2009, 13:00
Production at L&T Biowatti’s wood pellet plant in Luumäki, Southern Carelia, will be discontinued. At employer-employee negotiations at the plant, agreement has been reached to discontinue the production as a result of insecure raw material availability and wood pellet demand. The employment contracts of four persons will be terminated.
- As a result of production cuts made in the mechanical wood processing industry, the availability of competitively priced raw materials needed in the production of wood pellets has quickly become more difficult during recent months, says Kari Lahti, CEO, L&T Biowatti.
Although the use of wood pellets has gradually increased in Finland during the past few years, pellet demand prospects have weakened in the course of the past winter. The significant decrease in oil prices has led to a situation where the process of replacing oil with wood pellets for property heating purposes has proceeded slower than expected.
- The Government’s decision to increase taxation of oil products from the start of 2011 comes too late. Domestic pellet usage seems to remain low unless political decisions can be made quickly. At the same time, Finland is losing its chances to utilise wood pellets in order to increase its use of biofuels and reduce greenhouse gas emissions, says Kari Lahti.
Additional information:
Kari Lahti, CEO, L&T Biowatti, tel. +358 50 598 8490