Displaying items by tag: södra
Södra received its certification (1) according to the Recycled Claim Standard (RCS) on 24 June. The aim of RCS is to increase the use of recycled materials.
“This certification enables Södra to produce and sell RCS-certified OnceMoreᵀᴹ pulp. It means that customers receive a promise that recycled cotton has been added to the mixture and that the cotton is derived from collected textiles that would otherwise have been treated as waste,” said Eva Gustafsson, Sustainability Coordinator at Södra.
The Recycled Claim Standard is an international, voluntary standard that sets requirements for third-party certification of products containing recycled material. The certification is administered by Textile Exchange, an organisation focused on increasing sustainability in the textile industry and the textile supply chain.
“The Recycled Claim Standard is intended to show that you are processing and selling products that contain at least 5 percent recycled material. For Södra, this means that we can sell our OnceMoreᵀᴹ pulp with an admixture of recycled cotton as RCS-certified. RCS certification of products sold to end-consumers requires certification and traceability throughout the supply chain. The certification shows that our OnceMoreᵀᴹ pulp contains cotton that really is recycled and derived from collected textiles that would otherwise have been treated as waste,” said Eva Gustafsson.
With OnceMoreᵀᴹ, Södra has created a globally unique solution where large volumes of used cotton and blended fabrics can be re-used to make new clothing and textiles. Only a negligible proportion of all textiles are re-used today. Nearly everything is sent to landfill or incineration. That will change now that Södra can accept large amounts of textiles for recycling. The long-term target is to use 25,000 tonnes/year of textiles that would otherwise be treated as waste.“Following our launch of OnceMore™ in autumn 2019, we received several inquiries from brands and other players in the textile supply chain. One of the most common requests was that we obtain RCS certification. I am very pleased that we have already become certified, which is proof that we can offer products containing recycled textiles. Now I hope that the rest of the textile supply chain will follow suit so that RCS-certified garments and other textiles materials based on our OnceMore™ technology will soon be available in stores”, said Johannes Bogren, Vice President, Södra Cell Bioproducts.
(1) Certified by Control Union, CU 1059293
Södra’s operating profit during Q2 was stable given current market conditions. Deliveries were higher year-on-year, but prices for Södra’s core products were considerably weaker than in 2019. For the first half of 2020, operating profit totalled SEK 449 million (2,009), return on capital employed was 4 per cent (19) and the equity ratio was 57 per cent. Sales for the second quarter amounted to SEK 5,416 million (6,199) and operating profit totalled SEK 221 million (861).
“The global outbreak of COVID-19 has led to a serious global crisis. The extent of the economic impact is uncertain, since both production and demand have declined globally. It is with great respect and gratitude that I see how we are continuing to work together to slow the spread of the virus, while simultaneously managing our day-to-day operations,” said Peter Karlsson, Interim President and CEO. “We are also looking ahead and the Board has decided to make additional investments as part of the plan to increase the annual production capacity of our pulp mill at Värö to 850,000 tonnes so that Södra can continue to grow profitability as we move forward.
“Given the current market conditions, Södra posted a stable result in line with expectations for the first half of the year,” Karlsson added. “Net sales amounted to SEK 10,993 million (12,517) and operating profit totalled SEK 449 million (2,009). Demand for Södra’s core products was favourable, although prices for paper pulp and sawn timber were considerably lower year-on-year, albeit slightly higher at the end of the six-month period than at the beginning of the year.
“The management of storm-damaged and spruce-bark-beetle infested forests has been a priority, but there will still be challenges to deal with in the coming quarters,” Karlsson continued.
“A key element of Södra’s strategy for sustainable and profitable growth is the efficient use of wood raw material. One example is the pilot facility that is now under construction in Tofte, Norway. The facility aims to develop both the process and the technology for liquid biofuel,” Karlsson added. “A full-scale facility for liquid biofuel production has then been planned. With this initiative, we are taking further steps towards a fossil-free future by processing forest products. At the same time, it is also important that politicians facilitate the use of the potential of forests in the transition to a sustainable bioeconomy.”
In the second quarter of 2020, Södra’s consolidated net sales declined 13 per cent to SEK 5,416 million (6,199) and operating profit totalled SEK 221 million (861). The lower profitability was due to lower price levels for paper pulp and sawn timber compared with the year-earlier period. The operating margin was 4 per cent (14). During the first six months, sales declined 12 per cent to SEK 10,993 million (12,517) and operating profit totalled SEK 449 million (2,009). The operating margin was 4 per cent (16). Return on capital employed was 4 per cent (19) and the equity ratio was 57 per cent.
Södra Skog’s operating profit for the period totalled SEK 51 million (79). The result was due to weaker margins. During the same period, Södra Skog acquired 4.3 million m³sub, comprising 59 per cent pulpwood and cellulose chips, 31 per cent saw logs and 10 per cent biofuels.
Södra Wood’s operating profit for the period totalled SEK 62 million (118) and reflects the lower price trend for sawn timber. Underlying demand for sawn timber remained favourable. Deliveries from Södra Wood rose to 569,000 m³ sawn wood compared with 542,000 m³ sawn wood in the year-earlier period. Sales for the quarter amounted to SEK 1,580 million (1,592).
Södra Cell’s operating profit for the period totalled SEK 250 million (753). The earnings decline was attributable to considerably lower prices. Sales for the quarter amounted to SEK 2,626 million (3,250). Production totalled 483,000 tonnes, comprising 412,000 tonnes of NBSK, 33,000 tonnes of NBHK and 38,000 tonnes of dissolving pulp.
The Board of Södra has appointed Lotta Lyrå as new President and CEO. She will take office this year and thereby replace CFO Peter Karlsson, who has been Interim President since 20 February this year.
“I am very proud to present Lotta Lyrå as our new President and CEO. She has the right competency profile to develop Södra within the context of the new Group strategy that has been developed. With a background in Södra and experience in both forestry and industry, she has an understanding of the development potential of family forestry and the innovation-driven culture that exists within the Group,” said Lena Ek, Chair of Södra.
Lotta Lyrå has served as CEO of Clas Ohlsson since 2017 and also held various senior positions in the IKEA Group. At Södra, she was previously employed as Head of Productivity for the Group and Sawmill Manager at Mönsterås.
“I am delighted and honoured to be entrusted with this opportunity – together with Södra’s members, employees, customers and contractors – to nurture and further develop Södra for the future. Södra has a unique platform, in terms of both raw material and mills, for future profitability, growth and innovation. Especially in light of the climate benefits that forests and forest products can provide through both forest growth and the replacement of fossil-based products. I am really looking forward to returning Södra, with its strong set of values, optimism and competence, and reconnecting with colleagues, members and customers,” said Lotta Lyrå.
Last year, Södra decided to invest in an additional CLT facility at Värö and aims to become a leader in the Nordic region. Project planning and procurement is ongoing and Södra has now selected Ledinek as the supplier of a new production line – from intake to pressing.
The new facility will be established at the combined plant in Värö, adjacent to the pulp mill, the sawmill and to Södra’s first CLT facility. Ledinek also supplied the production line for the first plant.
“We selected Ledinek because it supplies a system solution that provides security for us and for our customers. Lessons learned from the existing production line have been taken into account in the procurement of the production line for the new and larger facility. The production line will feature state-of-the-art technology and a carefully planned layout to ensure an efficient process with high productivity,” said Krister Norberg, Head of Production.
A new CLT facility with a capacity of approximately 100,000 cubic metres is an important step in being competitive in an expanding market. Demand is substantial and interest in building with timber is growing considerably.
Södra offers building systems and products such as building components and fasteners, as well as new digital services to simplify and gain better control over the construction process. The focus is on driving the development of timber-based solutions in the construction and residential sectors, and thereby creating opportunities to make a climate-conscious choice in the housing market.
Despite dramatically changed conditions in the wake of the COVID-19 pandemic, production rates at Södra’s facilities remained high and stable in the first quarter. Sales amounted to SEK 5,576 million (6,318). Operating profit for the quarter totalled SEK 227 million (1,148). At the end of the quarter, cash and cash equivalents and current investments amounted to SEK 2,627 million (1,527) and the equity ratio was 60 percent.
“In the wake of the ongoing global spread of COVID-19, conditions changed dramatically towards the end of the first quarter. Södra has taken a number of steps to protect our employees, customers and suppliers in the first instance, but also any others that we come into contact with in order to save lives and protect health. “It is with great gratitude that I see how we are working together to slow the spread of the virus and to mitigate the negative effects of the ongoing crisis,” said Peter Karlsson, Interim President and CEO.
“The economic slowdown from 2019 was replaced by a general decline in supply and demand due to the outbreak of COVID-19, and the consequences are difficult to predict at present. Nonetheless, the first quarter result was in line with expectations. Net sales amounted to SEK 5,576 million (6,318) and operating profit totalled SEK 227 million (1,148),” said Karlsson. “Demand for Södra’s core products was favourable, although prices for paper pulp and sawn timber remained low during the quarter, albeit slightly higher at the end of the quarter compared with the beginning of the year.
“The necessary adjustment to these changed market conditions has been handled impressively by all employees in our respective operations. Without this commitment, we would not be so well-equipped to meet the future,” said Karlsson. “So, although the global economy is now slowing down, it is important that we maintain a long-term approach. Economic cycles will always cause market conditions to fluctuate, but in the long run, there is an underlying and steadily rising demand for forest-based products,” Karlsson concluded.
During the first quarter, consolidated net sales amounted to SEK 5,576 million (6,318), down 12 percent year-on-year. Operating profit totalled SEK 227 million (1,148) and the decline in profitability was due to lower price levels for paper pulp and sawn timber. The result corresponds to an operating margin of 4 percent (18). Return on capital employed was 4 per cent (22). At the end of the quarter, cash and cash equivalents and current investments amounted to SEK 2,627 million (1,527) and the equity ratio was 60 percent.
Södra Skog’s operating profit for the period totalled SEK 1 million (56). The result was due to weaker margins. During the period, Södra Skog acquired 4.9 million m³sub, comprising 54 percent pulpwood and cellulose chips, 32 percent saw logs and 14 percent biofuels.
Södra Wood’s operating profit for the period totalled SEK 22 million (147) and reflects the considerably lower price formation for sawn timber. Underlying demand for sawn timber also remained favourable. Sales for the quarter amounted to SEK 1,507 million (1,498). The delivery volume from Södra Wood rose to 519 km³ SW, compared with 476 km³ SW in the year-earlier period.
Södra Cell’s operating profit for the period totalled SEK 302 million (1,112). The earnings decline was due to a weaker price level, while higher volumes and a more favourable USD exchange rate had a positive impact. Sales for the quarter amounted to SEK 2,867 million (3,501). The production volume totalled 474 ktonnes, comprising 402 ktonnes of softwood sulphate pulp, 34 ktonnes of hardwood sulphate pulp and 38 ktonnes of dissolving pulp.
For a second time, FITNIR Analyzers was selected by Södra, a leading pulp producer based in Sweden, for its online pulp liquor analyzer. “This is an exciting project for FITNIR, as it is our second installation at a Södra mill,” says Thanh Trung, COO & CTO. “Being awarded with a project at Södra Cell Mönsterås in 2016 and now at Södra Cell Värö is an indication of approval of our technology.”
Södra invests in state-of-the art technologies, making its Värö mill one of the most modern pulp production facilities in the world. FITNIR Online will replace the current liquor analyzer in the causticizing plant at Värö and will provide insightful data for optimizing process control and automation. Södra Cell Värö’s main goal is to reduce the need for burnt lime in the causticizing process. The data from FITNIR’s online analyzer will reduce green liquor TTA variations to make correct lime dosing possible. The impact of reduced lime consumption is far-reaching, including energy and cost savings with the reduction of fuel needed in the lime kiln as well as the ability to produce enough lime for higher overall pulp production. Moreover, the increased measurement frequency with FITNIR Online opens a new world for recovery boiler optimization and subsequently lower energy consumption.
“FITNIR’s NIR technology provides greater opportunities for our Värö mill, while being the most cost-effective solution,” explains Södra Cell Värö Process Engineer Andreas Martinsson. “Very important to us is that FITNIR has proven their equipment works in mill industrial applications. No other supplier has the combination of top scientific experience and practical knowledge. With the excellent experience our sister mill in Mönsterås has had with FITNIR, we have very high expectations for this project.”
Kick-off and installation are expected to begin in the summer of 2020.
We are absolutely delighted to announce that we won awards for both Environmental Leadership and Marketing Campaign of the Year at the 2020 PPI Awards in Portugal earlier this week.
The PPI Awards are dedicated to recognising the achievements of companies, mills and individuals in the pulp and paper sector. The awards also serve as a platform that celebrates leadership, vision, innovation and strategic accomplishments within the industry. Our marketing campaign focusing on sustainability, The Journey, won the Bringing Paper to Life - Marketing Campaign of the Year Award, while our groundbreaking OnceMore™ technology to recycle textiles won the category for Environmental Leadership - From Sustainable Forestry to Waste Management.
Linda Ottosson, Head of Marketing Communication: “A sustainable future requires everyday heroes and new ways of thinking. It can be as easy as actively choosing products from responsible-managed forests, but we also need to maximize our part as an industry and communicate our sustainability credentials to a wider audience beyond our immediate target market. This is what we did with The Journey campaign and we are delighted to see its value recognised.”
According to the judges, “The winner of this category really went the extra mile when it comes to the global promotion of paper products as it told the world about the sustainability of the industry. It deliberately targeted customers' customers and beyond to redress misconceptions around, and raise awareness of, the sustainability of the modern industry.”
Win number 2: OnceMore™
The forest is an important part in the transition to a sustainable bioeconomy. Today, more smart products can be made from the forest than ever before and now Södra wins the prize for its sustainable and ground-breaking innovation OnceMore™
Johannes Bogren, Vice President of Södra Cell Bioproducts, was equally delighted: “A new, exciting journey has started for Södra. We can now offer circular flows of textile fibres so that a sweater can become a sweater again - this is a unique global solution for post-consumer waste!”
The jury’s verdict: “The pulp and paper industries can be very proud of all the work that has been done over recent decades on the environmental front, and now, at last, all that hard work is being rewarded by a general public that really ‘gets’ the fact that the products this industry makes are simply the best renewable, reusable and recyclable products on the market. But it’s not just paper products, there are other industries that are now open for the pulp and paper industries to enter into with its deep environmental know-how and process experience. The winner of this category clearly demonstrates this.”
Angeline Elfström, Customer Relations Manager, highlighted the team effort involved: “These achievements are the result of a lot of people working very hard – colleagues on The Journey project, the communication department, those behind and in front of the cameras and our external agencies such as Studio Dittmer. The OnceMore™ project team included a cross-functional team from our mills, Innovation, product development, sales and marketing. This really is a team award.”
Södra has built the world’s first plant for commercial biomethanol, a sustainable fuel from forest biomass, at Södra’s pulp mill in Mönsterås. Over the next few days, a first pilot delivery will go to Emmelev A/S, a customer that will be using biomethanol in its biodiesel production.
Södra decided to invest in a biomethanol production facility in 2017. This initiative shows that Södra is working towards a circular economy, resource-efficiency and being fossil-fuel free.
“It is with pride that we have now started up the first commercial plant in the world for biomethanol. The transition to a bioeconomy means that all raw materials must be used efficiently. Biomethanol is produced from the crude methanol recovered from the manufacturing process at Södra’s pulp mills. It is part of the circular process that already exists in Södra’s mills, in which all parts of forest products are used for the best possible effect. With this step, we are showing the way to a fossil-free society, and it is fully in line with our own strategy for fossil-free transportation by 2030,” said Henrik Brodin, Strategic Business Development Manager at Södra.
The investment is also broadening Södra’s product portfolio with a new bioproduct.
“More and more people are realising why we need to switch to fossil-free alternatives. That’s why it feels so great that we can bring biomethanol to the market as a substitute for fossil methanol in the transport sector as well as a chemical base. Demand for bio-based products is favourable and we have long experience in delivering other bioproducts to the fuel and chemical industries. As we now continue to build on that, it feels particularly gratifying to have made a first pilot delivery to our customer Emmelev A/S. We are now looking forward to continuing the development of the product together with our customers,” said Viktor Odenbrink, Sales Manager at Södra Cell Bioproducts.
Emmelev A/S is a Danish family-owned agricultural company that has developed large-scale biodiesel production from local canola, but uses fossil methanol as a raw material in production.
“Biodiesel will play a key role in the transition to a fossil-free Denmark and we are very happy that Swedish biomethanol will now be used in production. Our biodiesel will be 100% renewable and based on locally sourced raw materials. Biodiesel produced from Danish canola and Swedish forests can secure fuel supplies for heavy road transport, as well as buses and construction machinery. This will be crucial for a transformation of the energy sector. We emphasise local and regional production and consider Sweden part of our local area, and we have good relationships with Swedish companies. It therefore feels natural to be entering into an agreement with Södra,” said Morten Simonsen, co-owner of Emmelev A/S.
Founded in 1938, Södra is Sweden’s largest forest-owner association, with 52,000 forest owners as its members. We conduct modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. In 2019, net sales amounted to SEK 23 billion and employees totalled 3,100. Through value-generating relationships and a long-term approach, Södra shows the way for the next generation of forestry.
This autumn, the Södra Research Foundation called for research projects with a ‘Resource efficiency’ theme. SEK 8 million has now been granted to seven research projects with topics ranging from the core products and processes of the forest industy, to new innovations in the use of forest byproducts.
One of the projects being funded is called ‘Resource-efficient chipping of spruce bark-beetle damaged wood for chemical pulp production.’ This project focuses on developing a new drum-chipping technology for the pulping process.
“This new technology could lead to higher raw material utilisation and higher pulp yields, especially when using wood with low moisture content. We want to use our raw materials as efficiently as possible therefore, any improvement to our processes and equipment that leads to a higher fibre yield is of major interest to the entire forest industry,” said Catrin Gustavsson, President of Innovation and New Business at Södra.
Other projects are focused on the timber industry with aims ranging from increased utilisation of spruce for sustainable façades, bio-based surface treatments for wood and digitalisation of timber drying processes.
“In the move towards a bio-based society, wood holds a unique position as a raw material from a renewable source. If we want to remain competitive in the timber industry, we will have to introduce new measurement techniques and increase our use of digitalisation and robotics,” said Göran Örlander, forestry strategist and Chairman of the Södra Research Foundation.
Funding is also going to projects focusing on developing new forest-based materials and processes. Examples include the production of carbon fibre from kraft lignin and cellulose, porous materials for medical use, and a new process for the extraction of vanillin and vanillic acid from lignin.
“Finding new products, processes and applications for the forest industry’s by-products is an important complement to our existing business and contributes to the replacement of fossil-based products,” said Catrin Gustavsson.
Södra’s pulp mills have reached an impressive 4,700 GWh of green energy – enough for an electric car to circle the Earth 50,000 times, and to heat 27,000 homes. Our deliveries of biofuels now equate to 6% of Sweden’s total consumption of biofuels. And our 1.8 million tonnes of pulp could make 4.3 billion books and 480 million sweaters.
And yet most consumers are unaware of the range of sustainable products that pulp mill can produce and their contribution to the bioeconomy. We’re trying to change this, by highlighting the sustainability of pulp and paper products to a much wider audience than our customers.
Episode 3 of our journey to a more sustainable future is filmed at our Mönsterås mill, deliberately located next to one of our sawmills for optimal use of resources - the pulp mill provides the sawmill with energy and in return, the sawmill produces woodchips for pulp. This closed-loop cycle leads to higher energy efficiency and reduced transportation.
Did you know:
- · Mönsterås is free of fossil fuels for day-to-day operations. We produce more green energy than we use so the surplus is sold as green electricity, district heating and biofuels.
- · Last year, we launched a Nutrient Recycling service which is a prime example of a sustainable ecosystem approach: Bio-ash, a residual by-product of the pulp process, is reused to promote a higher rate of forest growth and strengthen the profitability of our forest estates.
- · Water is another area of focus. We employ a range of water conservation and treatment measures and are proud to be among the best in class when it comes to water conservation.
- · Sustainability is not just about the process, of course, it’s about every aspect of our business. Which is why we have a zero-accident vision for all our employees.
A sustainable future requires everyday heroes – and new ways of thinking. It can be as simple as actively choosing products from sustainably managed forests, but we also need to maximize our part, which is why we’ve been examining every aspect of our process to ask the question: Could we make the world’s most sustainable pulp? We’re inviting our customers to ask the same question and join us on the journey to a more sustainable future.
Via Pulp+, customers can engage in the project, not just by tracking our journey but also their own. What would happen if we were to combine all the sustainable aspects of our value chain – would we have the world’s most sustainable pulp? The most sustainable forest products?
Watch Episode 3 of our journey here
If you missed the first two videos, set in our nurseries and forests, click here