Setra Group will make a transition from continuous production to periodic production of cross-laminated timber (CLT) and wood components at the facility in Långshyttan, Dalarna, Sweden. This adjustment, aimed at ensuring long-term financial stability, will result in layoff notices being issued to around 60 employees.

“Rising timber prices, declining demand in the construction sector, and a surplus of CLT and wood components have significantly impacted profitability. This operational shift in Långshyttan is a difficult but necessary decision from a business standpoint,” says Marcus Westdahl, President and CEO of Setra Group.

While CLT and wood component production will be scaled back, the glulam production at the site will continue unaffected.

“We are fully aware of the impact this decision will have on the affected employees, their families, and the local community in Långshyttan. Our priority is to provide thorough support to our staff during this transition,” says Marcus Westdahl.

Setra has invested approximately SEK 550 million in the Långshyttan wood industry centre since 2018. However, the overall Scandinavian market climate for the wood industry has been challenging, with supply significantly exceeding demand. Several wood industry companies in Sweden and Europe have invested in CLT at the same time as the recession has created reduced demand from the construction sector. In addition, a shortage of timber has driven prices to their highest level in three decades.

The company intends to resume continuous CLT production when market conditions improve. As part of its forward-looking strategy, Setra is initiating a strategic partnership for the supply of CLT with Mayr-Melnhof, one of Europe’s leading producers in this field. This collaboration aims to enhance Setra’s technical offerings and expertise for customers in the Scandinavian market.

Setra is one of Sweden’s largest wood industry companies.

Source: setragroup.com