Setra to reduce production at Vimmerby sawmill
Against the background of the serious sawlog situation in southern Sweden, Setra is giving notice of production cutbacks of 20% at the Vimmerby sawmill. This affects a total of just over 20 employees.
A tough regional raw material situation with weak supplies and high prices, combined with the uncertain market situation, lie behind Setra’s decision to restrict its production volume at the redwood sawmill in Vimmerby.
“Sawlog prices in the region are far too high to be able to secure the supply of raw material at a reasonable price level. Our calculation just does not add up,” says Björn Ståhlberg, Manager of Setra Vimmerby.
“Demand in the international wood products market is very hesitant and, combined with the strong rate for the Swedish krona, this is putting the export-dependent wood products industry under considerable economic pressure,” says Johan Padel, President and CEO of Setra. “Approximately 70% of production at Vimmerby sawmill is sold in markets outside Sweden.”
The production restrictions at Setra Vimmerby mean that the rate of production on an annual basis will be reduced from approximately 160,000 m3 to approximately 127,000 m3 of sawn product. The plan is to achieve this reduction by a transfer from 2-shift to 1.5-shift production. Of the total of approximately 70 employees at the sawmill, just over 20 will be affected by this notice.
The employees have been informed and negotiations under the Co-determination Act (MBL) will be started.
Setra Group includes a total of nine sawmills, three processing units and, via the subsidiary Plusshus, two modular building factories.
For further information, please contact:
Björn Ståhlberg, Manager Setra Vimmerby Tel: +46 492 283 05, Mobile: +46 725 43 15 42
Johan Padel, President and CEO, Tel: +46 8 705 03 10, Mobile: +46 702 14 82 44
Setra is one of Sweden’s largest wood products companies and a leading player in Europe. We offer eco-certified wood products for interiors and construction to customers in the building materials trade and industry.
The Group has 1,000 employees and annual sales of approximately SEK 4.5 billion. Exports to Europe, North
Africa, the Middle East and Japan account for almost 60% of sales. Read more at www.setragroup.com
Press contact: Lotta Löwhagen Lundberg, , 46 70 654 13 44