Wednesday, August 27, 2025
Setra Group, a prominent Swedish wood products company, has announced a significant operating loss of SEK 60 million for the second quarter of 2025, a stark contrast to the SEK 31 million profit reported in the same period last year. This downturn is attributed to a combination of declining demand in the construction sector and escalating timber prices, which have strained the company’s profitability.
Challenges faced by the Swedish timber market
The woodworking industry is currently grappling with several challenges. High timber prices, driven by a shortage of raw materials, have increased production costs. Simultaneously, weak demand from the construction sector has led to reduced sales volumes, further impacting revenue. These factors have created a challenging environment for companies like Setra, which rely heavily on both stable raw material costs and consistent demand from the construction industry.
In response to these market conditions, Setra has implemented strategic measures to align its operations with current demand levels. Notably, the company has restructured its production at the Långshyttan facility, transitioning from continuous to periodic production of cross-laminated timber (CLT) and wood components. This adjustment aims to optimise production efficiency and reduce costs. However, this move has led to the issuance of layoff notices to approximately 60 employees, reflecting the company’s efforts to balance operational capacity with market realities.
Investment in glulam production
Despite the challenges, Setra continues to invest in areas with stable demand. The production of glulam, a type of laminated timber, remains unaffected by the recent restructuring. Glulam is increasingly sought after for large-scale construction projects due to its sustainability and strength, positioning Setra to capitalize on this growing market segment.
Setra’s management remains cautious but optimistic about the future. While the company faces short-term challenges, it is actively exploring strategic partnerships and investments to strengthen its position in the market. The focus on glulam production and the restructuring efforts are part of a broader strategy to ensure long-term sustainability and profitability.
The second-quarter loss reported by Setra underscores the pressures facing the woodworking industry amid high timber prices and weak demand. While the company navigates these challenges through strategic adjustments and investments, the path to recovery will depend on broader market improvements and the successful implementation of its long-term strategies.
About Setra Group
Setra is one of the biggest wood firms in Sweden. For the global housing and construction market, the Group uses its facilities to make highly refined, climate-friendly products from forest raw materials, including cross-laminated timber (CLT), planed wood, and glulam. The sustainably maintained forests in some of the world’s best places to get softwood raw materials are the source of their timber. For usage in the creation of energy, they also supply the pulp and paper sector with bioproducts, including bark, chips, and shavings.
Setra wants to conduct business in a way that benefits not just ourselves but also customers, the environment, and society. This is referred to as “Grönsamhet.” The goal is to generate green value. Setra operates eight production facilities in and around Sweden, in addition to seven sawmills that manufacture CLT, glulam, and components. Setra Wood Products also operates a planing mill operating in Great Britain.
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Tags: Setra Q2 loss, Setra sawmill operations, timber market trends, timber prices 2025, woodworking industry news
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