Setra plans to ramp up production in response to global demand21 October 2020
Swedish sawmilling group Setra plans to fully ramp up production during the autumn in response to strong demand and product shortages on global markets.
The company shared its plans during its Q3 results publication, which showed that Setra has managed to return a positive operating profit of SEK56m (2019: SEK95m) for the first nine months of the year. Net sales for the period totalled SEK3.04bn (2019: SEK3.26bn).
There was an operating loss for the third quarter of SEK-3m (2019 Q3: SEK-22m), with net sales of SEK840m (2019 Q3: SEK879m).
The operating profits in 2020 are reduced compared to 2019 due to significantly lower sales prices. Sawmill production has been maintained without furloughing any employees.
However low production volumes in July have had a negative impact on profits. Setra said the market situation has markedly improved in Q3, with the European market recovering strongly and exports from Europe to the US also rising steeply. Combined with lower production volumes in Canada, this has led to a general shortage of goods in the global market.
“The current situation of strong demand and lack of supply gives Setra an opportunity to fully ramp up production over the autumn,” said Katarina Levin, Setra’s CEO.
“The global COVID-19 situation makes it difficult to judge how the market is going to develop in early 2021 but, based on the situation right now, the prospects look much better than they did earlier this year.”
The end of September marked Setra’s first delivery of cross-laminated timber (CLT) for Bologna 1, the first of four apartment blocks that make up the Cederhusen development in central Stockholm.
Cederhusen is being built by Folkhem as Sweden’s largest mass-timber built residential neighbourhood. CLT deliveries for Bologna 1 are planned to continue for the rest of the year and into January 2021.