Malå sawmill adjusts production to local raw material situation

Malå sawmill, which is part of Setra Group, is to scale down production to adjust its operations to the local raw material situation. Approximately 20 people are affected by the production cutback.

Rickard Westerberg, Manager of Malå sawmill, comments: “In the area around Malå here in central Norrland the volume of available timber raw material is decreasing. This means we must adapt our production volume to the local conditions.”

Today the Malå sawmill has an annual production of approximately 216,000 m3 of sawn timber. The production cutback will reduce the total annual production level to 165,000 m3.

“Our deliveries to Setra’s own and local processing industry in Malå and Norsjö have priority and will not be affected,” says Rickard Westerberg.

Approximately 85,000 m3 of the volume produced at the Malå sawmill currently goes to Setra’s own processing unit in Malå and to local manufacturers of windows and laminated panels. The aim is to expand this local processing.

Approximately 20 people are expected to be affected by the production cutback which is planned for implementation from 1 February 2008. Negotiations under the Swedish Co-Determination Act (MBL) have started.

Setra operates sawmills and processing units at 16 locations in Sweden. Setra has both a sawmill and a processing unit in Malå. Malå sawmill, which is affected by the planned production cutback, currently has 70 employees. Malå processing unit has 30 employees.