May 04, 2009. /Lesprom Network/. The local negotiations under the Swedish Co-Determination Act (MBL) between Setra’s management group and union representatives regarding closure of Färila sawmill in Ljusdal municipality were completed. The negotiations ended in disagreement, but the trade unions have notified that they do not intend to proceed to central negotiations. The plan is to cease sawing at Färila in July, as the company informed Lesprom Network. “Having to close a sawmill is an onerous task,” says Kent Torwald, President and CEO of Setra. “Färila sawmill has a long tradition in the district and the level of expertise here is very high. The extremely strained profitability situation forces us, however, to implement extraordinary measures in order to be able to strengthen our competitiveness over time.” Against the background of the prevailing tough market situation in the wood products industry, in February 2009 Setra’s Board decided to initiate MBL negotiations on closure of Färila sawmill. A wage-earner consultant took part in the MBL process and recently submitted his report. “The wage-earner consultant’s report did not add anything new that changes the direction decided by the company,” says Torwald. “The wage-owner consultant agrees that action is required to improve profitability, but the consultant’s proposal unfortunately provides a considerably lower improvement in earnings than closure of Färila sawmill. “The wage-earner consultant’s proposal is to retain one of the two current shifts at Färila and streamline sawing to spruce alone. However, this would lead to increased costs of approximately SEK 20 million ($2.5 million) on an annual basis. Operating a sawmill at half capacity provides no cost benefits and would not strengthen our long-term competitiveness, which is essential,” says Kent Torwald. Setra Färila has approximately 70 employees.