Setra in new production cutback

Setra of Sweden is embarking on production cutbacks to adjust to prevailing market conditions.

“Excess supplies of sawn timber, a seasonally tougher market situation and the negative effects on exports of an increasingly strong Swedish krona, are the underlying reasons why Setra is now reducing its production volumes,” said president and CEO Börje Bengtsson.

“The market situation is difficult in the short term and we are monitoring developments with care.”

He said a number of production cutbacks will be implemented between December and January. “Additional measures cannot be ruled out,” he added.

The sawmills that will be affected initially are Vimmerby, Hasselfors, Heby, Nyby and Malå.

Some sawmills will stop production entirely during certain weeks, others will cut production by reducing the number of shifts.