Setra in brief
Swedish wood for a sustainable future Here at Setra we love wood. We process raw material from responsibly managed Swedish forests into climate-friendly products for a global market. Our vision is a sustainable world – in which the use of wood will increase and contribute to a sustainable development which benefits everyone. Wood is a fantastic material with a wide range of applications. Products from Setra are used for everything from paper to multi-storey buildings. But our core business is sawn and processed redwood and whitewood products. The Group has annual sales in excess of SEK 4 billion which makes us one of Sweden’s largest wood products companies. Our wood products are mainly used for building and living and account for approximately 85% of our sales. Customers include the wood processing industry, the building materials trade, modular building factories, furniture manufacturers and importers. The processed product range includes building products such as glulam, exterior claddings, interior claddings, floors and decking. Bioproducts such as chips, sawdust and bark are left over from manufacture and used in the
Swedish production units
pulp and paper industry as well as the energy sector. These products account for 15% of Setra’s sales and are an especially important business in terms of resource efficiency. Thanks to our bioproducts we can say that no part of the log goes to waste. Setra has approximately 800 employees, most of whom work at the production units throughout Sweden. Sawmills and processing units are located close to the forest and are often a significant employer in the small communities in which we operate. A total of some 50 employees work at our sales offices in the UK, Germany, Poland, France, Spain, Japan and China. In the UK, we also have three distribution warehouses as well as the subsidiary M&S Softwood, with processing and distribution operations.
Wood has a unique ability to climate compensate for emissions formed at production and transport since it binds large amounts of carbon. Wood therefore has a given place in the transition to a sustainable society.
Hannele Arvonen, President & CEO of Setra
Wood for Life is the core of the Setra brand and summarises our vision, our values and our brand promise.
With our renewable wood products we want to help build a sustainable world – for future generations as well. Our values – commitment, innovation and responsibility – guide our decisions and behaviour so that we achieve our vision. Our brand promise is natural simplicity. This means that it must be simple to do business with Setra, just as wood is simple to use and comfortable to live with.
Färila Kastet Skutskär Nyby Heby
Redwood mill Whitewood mill Processing unit Setra has a total of eight sawmills and three processing units, including one in King’s Lynn in the UK. Two of the sawmills, Malå and Rolfs, have integrated sawing and planing.
Climate benefit with wood – works like this When the forest grows it takes up carbon dioxide which is stored in the trees in the form of carbon. Wood binds 800 kilograms of carbon dioxide per cubic metre. This means that even though we use energy to saw planks, construct wooden buildings and send our wood products to other countries, the climate gain is considerable.
Tongue and groove slats Mouldings Crosslaminated timber
Edge-glued worktops and fittings
Strengthgraded structural timber
Heartwood pine decking
Wood for the whole world Wood products from Setra are delivered in many different configurations. We process a large proportion ourselves such as structural timber, claddings, glulam, wooden flooring and decking. The products are sold to the Swedish building materials trade and various industrial customers. Our customers in the wood industry further process other wood products from Setra into windows and doors, furniture, boards, cross-laminated wood, joinery and mouldings. The house pictured above shows how our wood can be used. Redwood is primarily used for visible products such as floors and furniture as well as pressure-treated timber for outdoor use.
Wood in a climate perspective
Whitewood meets high stress requirements and is often used as structural timber but also for visible products such as claddings and glulam. Just as our products are simple and comfortable to live with, it should be easy and secure to do business with Setra. We know how to produce the right length and quality based on customer needs, whether they are in Sweden or on the other side of the world. By sorting the right timber already in the forest and producing dimensions to fit the customer’s product range, we can optimise the use of timber in a manner that benefits the customer, Setra and the environment.
– emissions and lock-in kg carbon dioxide per cubic metre of sawn product.
254 200 47
105 ■ Excl. deliveries to customers
Ge rm any
Sw ede n
■ Including transports to average customer in standard destinations
-400 -600 -800
Sawn wood products 66% Processed wood products 18%
Net sales by business 2016
■ Amount of carbon stored in wood converted into CO2
Emissions are calculated from a life cycle perspective i.e. from planting to transport of finished wood products to an average customer in various destinations. The calculations are reported according to the GHG Protocol’s guidelines. Visit www.setragroup.com to calculate the climate benefit of your order.
*Plusshus was sold in May 2016 and is included with five months.
Wood products sold by Setra in 2016 bind 1.35 million tonnes of carbon dioxide. This corresponds to GHG emissions from
*Or approximately 270,000 people, according to the World Bank’s figures from 2013.
Responsibility for the raw material All Setraâ€™s timber comes from responsibly managed forests and is controlled raw material. This means that its origins are known and forest management meets basic requirements according to the forest certification systems FSCÂŽ and PEFC.
Bioproducts Chips, sawdust and bark are by-products from our sawmills and planing mills but they become valuable raw material for others. Raw chips, cellulose chips which have the highest value, come from the outer parts of the log and are an important raw material for the pulp and paper industry. Dry chips, bark and sawdust are used as fuel mixes in CHP plants. Sawdust and wood shavings also go to the pellet industry. Our sawdust is also found in chipboard and shavings are popular as animal litter.
c. Planks and boards
Roughly half of the volume of the log becomes boards and planks. The other half becomes various bioproducts.
Pulp and paper industry
Bark, sawdust and dry chips
Key figures 2016
Production of sawn wood products
Average number of employees
1.69 million m3
Sales volume by market, 2016 – sawn wood products > 100,000 m3 25,000 - 100,000 m3 < 25,000 m3
Grades* U/S V VI
Net sales, SEKm
Operating profit, SEKm
Profit after tax, SEKm
Return on operating capital,%
Setra’s ten largest markets outside Sweden
– share of net sales 2016
% 10 8
rabi di A
pt Mor occo
*Planks and boards are sorted in different grades where U/S (unsorted 1 I-IV) is the highest grade. V (fifths) is the second highest and VI (sixths) is the lowest grade. Grade depends among other things on size, volume and placement of knots.
Setra’s Royal shipping mark is a well-accepted trademark for sawn7 wood products. It has been used since 1943 and functions today as a guarantee for timber5 quality and customer service.
Setra’s annual production is enough to build
Setra’s value chain Sawmills Sawn wood products
Processed wood products
Our vision is a sustainable world Setra’s aim is that sustainability will permeate our entire value chain – from forest to end product. The starting-point is to reduce our negative carbon footprint and increase the value and positive effects of our operations at every stage. Our values – commitment, innovation and responsibility –govern how we behave in a sustainable and ethical manner in our day-to-day work. The focus is on issues and areas where we as a company have a major influence, a clear responsibility and the ability to contribute, as well as the issues that are high on our stakeholders’ agenda. Our four key areas are business ethics, employees, working environment, and climate and environment. Setra also supports Agenda 2030 and the UN Global Goals For Sustainable Development. We make an active contribution towards several of them becoming reality.
Setra was formed when Mellanskog Industri AB and AssiDomän Timber Holding AB merged in 2003. The aim was to create a driving force in the development of a modern wood products industry. The first part of our name, “SE”, reflects the company’s Swedish roots. The second part of the name “TRA” is the Swedish word for wood (trä) and indicates the focus of the company’s operations. Setra is owned to 50% by Sveaskog, Sweden’s largest forest owner, and to 49.5% by the forest owner association Mellanskog. The remaining 0.5% is owned by approximately 1,500 small shareholders.
Setra Group AB Box 3027, SE-169 03 Solna Tel +46 8 705 03 00 firstname.lastname@example.org www.setragroup.com
An extract from the 2016 Annual Report, presenting Setra Group in brief.