Setra consults on Horndal sawmill closure

Setra has started talks on plans to close its Horndal sawmill in Avesta.

Setra said a weak earnings development, a falling market for Horndal’s special product range and major investment needs are the reasons for the decision. About 35 employees are affected.

Horndal, part of Setra’s Redwood business area, processes high-quality butt logs from slow-grown pine. The products have traditionally been sold as unedged wood products as well as window frames to small furniture and window joineries throughout Europe.

“The market for Horndal’s high-quality special products is shrinking due to structural changes in the customer base,” said Setra’s president and CEO Börje Bengtsson.

“As small specialised joineries disappear as customers, the previously profitable special product range accounts for an ever diminishing share of sales from Horndal.

“Earnings development for the Horndal sawmill has been weak for a long time. The unit also has major, urgent investment needs which cannot be justified in the shrinking market situation.”

Production volume in 2011 was 32,000m³ of sawn product.