At the plant in Långshyttan, Dalarna, Setra Group will switch from producing cross-laminated timber (CLT) and wood components continuously to producing them periodically. This change will result in about 60 employees receiving layoff notices in an effort to maintain long-term financial stability.
“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,” claims 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. Marcus goes on, “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.”
Setra has invested around SEK 550 million in the Långshyttan wood industry centre since 2018 amidst a tough Scandinavian market where supply surpasses demand, leading to challenges for wood industry firms investing in CLT due to reduced construction demand influenced by the recession and high timber prices.
The company plans to restart CLT production with a new partnership to enhance technical offerings for Scandinavian customers. Both CLT and glulam are key renewable materials that could replace concrete and steel in sustainable construction. The stable glulam market sees rising demand for large-scale projects. “I am confident that CLT will also take its place in the circular economy in the future. It’s reassuring that we’ve found a solution that not only strengthens our market position but also ensures that our existing customers remain unaffected by the operational changes in Långshyttan,” Marcus Westdahl continues.
Information on Setra’s Wood Industry Center in Långshyttan:
- In 2018, Setra purchased Outokumpu’s Långshyttan steel factory.
- The company has invested around SEK 550 million in the facility
- The Långshyttan Wood Industry Center produces wood components for windows and doors as well as cross-laminated timber (CLT) and glued laminated timber (glulam).
- At the moment, Setra employs 134 people in Långshyttan.
- The production restructuring will result in the layoff of little more than 60 people.
- Långshyttan’s glulam production won’t be impacted by the outcome.
- The decision will not have an impact on the recently established pellet factory in Långshyttan.
Read more news on: Setra, CLT, wood industry, sustainability, materials, circular economy, construction
Get more updates through the American woodworking website: woodandpanel.us
