“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.
Both CLT and glulam are important renewable building materials, which in the long term have the potential to replace concrete and steel in the green transition. The glulam market is a stable and established market today and demand for large-scale construction projects is increasing.
“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 adds.
For questions, contact:
Melanie Sjögren, EVP Sustainability and Communications
+46 706 006 118, melanie.sjogren@setragroup.com
Facts: Setra's Wood Industry Center in Långshyttan
- Setra acquired Outokumpu's steel plant in Långshyttan in 2018
- The company has invested approximately SEK 550 million in the facility
- The Långshyttan Wood Industry Center manufactures glued laminated
timber (glulam), cross-laminated timber (CLT), and wood components for
windows and doors. - Setra currently has 134 employees in Långshyttan
- As a result of the production restructuring, just over 60 employees will be laid off
- The production of glulam in Långshyttan will not be affected by the decision
- The newly invested pellet factory in Långshyttan will not be affected by the decision
