Swedish forestry companies have had a tougher start to 2025 than expected, according to a report from the Swedish Forest Industries Federation, which represents companies in the wood processing, paper, and wood mechanical industries. The report points to a combination of higher costs and lower demand, which has taken a toll on Swedish sawmills and pulp and paper producers. In addition, increased tariffs create uncertainty, as well as the strong Swedish krone. Sweden is one of the world’s largest exporters of pulp, paper, and sawn wood products. According to the Swedish Forest Industries Federation, more than 80 percent of the products are exported and the largest market is Europe. Several of the major forestry companies have production sites in Northern Sweden. Holmen’s two sawmills are outside of Skellefteå and Umeå, while SCA is located in Piteå municipality. The Swedish-Finnish company Stora Enso has two facilities in Northern Finland.