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Sawmills in Crisis: The Timber Industry Debacle Hits Southern Chile
The timber industry in Chile is undergoing a deep crisis. Over the past five years, nearly 20% of the country's sawmills have closed their doors, a situation that has particularly impacted small and medium-sized enterprises (SMEs) and led to massive job losses, especially in the southern region.
SMEs in the sector warn that the situation has become unsustainable. Many companies are insolvent and report a significant reduction in jobs. The causes of this crisis are multiple and complex:
Construction Crisis:Low demand in the construction sector has depressed the timber market.
Economic Factors:Rising interest rates and falling material prices have affected the economic viability of operations.
Insecurity in the Southern MacrozonaViolence, timber theft, and wildfires have created a high-risk environment for production.
The Threat to the Sector's Sustainability
Forestry industry associations have expressed concern over the lack of support for reforestation, which, in their view, will lead to a shortage of raw materials in the future. They warn that if urgent measures are not implemented, the crisis will deepen, jeopardizing the continuity of hundreds of forestry SMEs and the economic stability of thousands of families.
In the Biobío Region alone, a key hub for the sector, over 20 sawmills have closed since 2020. This is in addition to the disappearance of 50 small and medium-sized sawmills over the past 10 years, according to estimates by Pymemad and Corma Biobío-Ñuble. These closures, along with the shutdown of industrial plants such as Horcones 2 and the indefinite suspension of El Colorado, have left hundreds of people unemployed.
A single sawmill can generate between 10 and 100 jobs. The loss of each one multiplies the impact of the crisis, affecting not only workers but also the local communities that economically depend on this industry.
Source:Hora 12
