Setra Group to invest SEK 40 million in Kastet sawmill

During 2006 Setra Group will invest approximately SEK 40 million in the Kastet Sawmill, Gävle. The investment will make the production process more efficient and is expected to boost profitability by approximately SEK 15 million per year.

The investment in Kastet Sawmill includes extension and rebuilding of the existing trimmer as well as increasing the sawmill’s drying capacity. The present three lines in the trimmer will be replaced with a single line with an advanced sorting technique, which includes reading the grade of the timber. This will enhance efficiency and improve the working environment since dust, noise and vibrations will be significantly reduced.

“This investment is part of our efforts to meet growing customer demands while at the same time improving profitability,” says Kent Torwald, President of Setra Group. “Kastet Sawmill’s customers are primarily furniture, panel and floor manufacturers. Good trimming and quality optimisation of the wood are extremely important to this customer segment. In addition, there is growing demand for dried timber.”

The investment is expected to improve earnings by approximately SEK 15 million per year with effect from 2007.

The aim is to make this investment during the summer holiday shutdown. Since the running-in phase will be carried out in autumn 2006, the full earnings impact will be achieved no later than year-end 2006.

For additional information, please contact:
Kent Torwald, President Setra Group: +46 8 705 03 13, +46 70 636 74 03
Jerker Nyström, Sawmill Manager: +46 26 54 80 05, +46 70 330 09 43
Eilert Eriksson, Local Manager Kastet Sawmill: +46 26 54 80 01, +46 70 214 15 40.