Setra cuts production at redwood mill

The company blamed the decision on a tough regional raw material situation with weak supplies and high prices, combined with an uncertain market situation.

The cut means output will reduce from 160,000m3 on two shifts to 127,000m3 on a 1.5 shift basis.

“Sawlog prices in the region are far too high to be able to secure the supply of raw material at a reasonable price level,” said Björn Ståhlberg, manager of Setra Vimmerby.

“Our calculation just does not add up.”

“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,” said Johan Padel, president and CEO of Setra.

“Approximately 70% of production at Vimmerby sawmill is sold in markets outside Sweden.”