Major sawn products order marks trend break

Major sawn products order marks trend break Setra has become sole supplier of pine boards for sub-floors for Kähr's parquet flooring. The agreement runs for three years and is worth approximately SEK 100 million per year. "This is a new trend break that the company is obtaining all its supplies from one supplier like this instead of buying small volumes. We can probably thank modern management at Kährs for reaching such a decision," comments Setra's President Anders Nilsson. The agreement is a co-operation agreement where Setra's partners are Södra Timber and Iggesund Timber. In this respect as well the agreement marks a step along the way towards new forms of co-operation within the wood products industry. The major gain for Kährs is that instead of purchasing small volumes from a large number of suppliers, they have now placed the entire responsibility with Setra, which also holds stocks. Anders Nilsson believes that this type of deal can pave the way for future development where sawmills get closer to their customers and became partners rather than suppliers. This would favour both the product and the industry as a whole. Kährs also sees many advantages with such an extensive and long-term agreement. "Having one major supplier allows us to optimise this co-operation and conduct joint development projects, which is good for both companies," says Folke Becker, President of Kährs. "Setra understands our needs and at the moment we have three heavy projects under way where together we are trying to find effective solutions for our continued co-operation". The agreement was signed at Kährs in Nybro on 8 July 2004. Setra facts: Setra Group AB is Sweden's largest and Europe's fourth largest wood products company with annual sales in excess of SEK 5 billion and some 1,500 employees. The company was formed in 2003 following a merger between AssiDomän Timber and Mindab (Mellanskog Industrier AB) and has two business areas - Setra Sawn Products and Setra Wood Products. Setra is owned by Sveaskog (50%), LRF (25%), Mellanskog (24%), and 1% by private shareholders. Setra supplies appearance wood of the highest quality - sawn timber and processed sawn products such as mouldings, panels, floors, glulams and pressure-impregnated wood. The customer base is industry and the building trade in Europe and Japan. Kährs facts: AB Gustaf Kähr was founded 1857 and is today a world-leading parquet and wood flooring producer. The company has approximately 2,100 employees and 2003 sales totalled EUR 220 million. Kährs is owned by Nybron Flooring International in Switzerland and operates in some 40 markets worldwide with subsidiaries in around ten countries. The main markets are Europe and North America. Kährs also operates in Southeast Asia through local importers and its own sales organisation. The product range comprises multi-layer parquet, veneer flooring and floor accessories. Kährs has production plants in Nybro, Ljusdal and Blomstermåla in Sweden, and in Brumunddal in Norway. For additional information, please contact: Urban Torstenson, Setra Group, +46 70-575 52 42 Anders Nilsson, Setra Group, +46 70-574 19 17 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/07/14/20040714BIT20590/wkr0011.pdf http://www.waymaker.net/bitonline/2004/07/14/20040714BIT20590/bild.html Pictures