Oct 25, 2012. /Lesprom Network/. Against the background of the serious sawlog situation in southern Sweden, Setra is giving notice of production cutbacks of 20% at the Vimmerby sawmill. This affects a total of just over 20 employees, as the company said in the press release received by Lesprom Network. A tough regional raw material situation with weak supplies and high prices, combined with the uncertain market situation, lie behind Setra’s decision to restrict its production volume at the redwood sawmill in Vimmerby. “Sawlog prices in the region are far too high to be able to secure the supply of raw material at a reasonable price level. Our calculation just does not add up,” says Bjorn Stahlberg, Manager of Setra Vimmerby. “Demand in the international wood products market is very hesitant and, combined with the strong rate for the Swedish krona, this is putting the export-dependent wood products industry under considerable economic pressure. Approximately 70% of production at Vimmerby sawmill is sold in markets outside Sweden,” says Johan Padel, President and CEO of Setra. The production restrictions at Setra Vimmerby mean that the rate of production on an annual basis will be reduced from approximately 160,000 cubic metres to approximately 127,000 cubic metres of sawn product. The plan is to achieve this reduction by a transfer from 2-shift to 1.5-shift production. Of the total of approximately 70 employees at the sawmill, just over 20 will be affected by this notice. The employees have been informed and negotiations under the Co-determination Act (MBL) will be started. Setra Group includes a total of nine sawmills, three processing units and, via the subsidiary Plusshus, two modular building factories.