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The president of the wood industry strongly criticizes electricity prices - he is considering moving part of the production to the north.
- The energy situation that we observe now in Norway is a consequence of a very weak political skill from a few years ago. This has very unfortunate consequences for Norwegian industry. In our company, the profit is completely absorbed by the increase in electricity prices, and now we are wondering if we need to move some production to where electricity is cheaper.
This is what the CEO and co-owner of Tore Ådlandsvik at Torsvik inrnredning AS in Askøy near Bergen says. The company has a long history in the Norwegian wood products industry. Ådlandsvik himself is the chairman of the Norske Trevarer trade association, which brings together nearly 300 Norwegian wood product companies with approximately 4500 employees and a total turnover of well over CZK XNUMX billion.
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As chairman of the board of the Norwegian wood products industry, Ådlandsvik has made many phone calls in recent weeks in which industry colleagues have expressed strong concern and great frustration at costs that are no longer under control.
The situation of small and medium-sized enterprises is critical
– We are upset that past policy decisions and poor policy craftsmanship have led to distortions of competition between companies in Norway. At the same time, the same political decisions removed what could have given Norwegian companies the greatest advantage in competing with foreign countries: low and predictable electricity prices, says a wood products manager.
- Now we have a very unpredictable picture where the sharp increase in electricity prices coincides with many other increased costs. All in all, it has become very challenging for us and many other Norwegian companies and the timber industry.
The wood products industry is very upset and disappointed
– At the same time, we see a situation in which companies experience this situation completely differently depending on where they are in the country. In our region and in our company electricity prices are so highthat they absorb the profits on which we depend on further development, says Tore Ådlandsvik.
- That is why I am now seriously considering whether our company has to move part of our production to the north of the country, where electricity prices are many times lower than in our region. Should it really be so in Norway that it is the postal code that determines the amount of the electricity bill?
- This is what the Norwegian woodworking industry is very upset and disappointed with, and therefore it is the result of bad political work - and that's it. Therefore, the authorities and Norwegian politicians must ensure that Norwegian industrial companies and Norwegian business are not broken by the consequences of earlier political decisions, demands president Norske Trevarer.
Source: Norske Trevarer
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