Setra says prices stabilise at relatively high level after Q4 downturn

Net sales totalled SEK 5.84bn (2020: SEK4.13bn), while the company generated Q4 operating profit of SEK369m (2020 Q4: SEK61m) with corresponding quarterly net sales of SEK1.56bn (2020: SEK1.08bn).

“At the start of Q4, the wood products market was very hesitant and prices saw a significant downturn,” said Katarina Levin, Setra’s CEO.

“However, they stabilised at a relatively high level and contract activity finished strongly ahead of Q1 2022.”

At the end of October, Setra announced its decision to invest a total of SEK100m in high-capacity drying kilns for Heby and Hasselfors. 

The increase in drying capacity in Heby and Hasselfors is an important element in the ongoing development of Setra’s operations in Bergslagen. 

Earlier this year, the company decided to invest in a new saw line in Skinnskatteberg, and last year a new rip saw was installed at the sawmill in Nyby. 

Examples of other investments in this area include CLT (cross-laminated timber) and components in Långshyttan, planed construction timber from the new trimming and planing plant in Hasselfors and new x-ray technology in Kastet, Nyby and Skinnskatteberg. 

In total, Setra has invested more than SEK1bn in Bergslagen over the past four years.

In October, Setra’s Board decided to invest around SEK390m in the Malå sawmill. 

The facility in Malå will have a new log intake, a new saw line, an upgraded trim saw and a new drying unit. 

This new unit will deliver higher-quality products, more efficient production and a lower climate footprint through smarter technology and processes compared with the current facilities. 

In total, the investments mean an increase in capacity of approximately 400,000m3 of sawn wood products when they are fully implemented.