Negotiations between Setra management and union representatives over the intended closure of Lövholmen sawmill have broken up without agreement.
Setra signalled its intention to close the mill in February but a consultant’s report has identified that all Setra’s sawmills in the north could be retained and operated with fewer shifts.
“Our calculations, however, clearly show that this solution would provide significantly less favourable competitiveness than production with full capacity at the remaining units,” said Kent Torwald, president and CEO of Setra.
Setra is awaiting notification from trade unions of their intention to start central negotiations before the process of closing the mill can begin.
The plan is to close the mill, which has 60 employees, at the end of the first half of 2009.
