Displaying items by tag: södra

Wednesday, 18 June 2014 09:45

Commercial step for DuraPulp

In collaboration with UK based James Cropper PLC, the speciality paper and advanced materials group, Södra is taking the first commercial step into the international market for bio-composite material DuraPulp.

dyrapulp cropper

The collaboration brings together the respective core competences of each organisation and the creation of cross-functional expert teams with the aim to develop DuraPulp solutions for a wide potential range of applications. 
"James Cropper's extensive technical competence and global market reach will mean that we will be able to speed up the commercialisation of DuraPulp," said Anna Altner, Södra's Project Manager for DuraPulp.

"Initially, the collaboration will involve niche and high end packaging related applications but we do see wide potential opportunities, including the horticulture market," explained Jacqueline Redman, Strategic Marketing and Innovation Manager at James Cropper.

James Cropper plc has 2 business divisions - the paper division includes the speciality and luxury paper manufacturing and converting business and the non-woven division, Technical Fibre Products which has a holds a niche and leading position in the aerospace, energy, medical, automotive and other sectors. 

James Cropper Speciality Papers is one of the world's leading producers of bespoke coloured paper; in the last six months alone it has won two awards for innovative sustainable luxury packaging, most recently in Shanghai. 

"We will be exploring these markets to establish if our unique product can offer useful solutions," noted Urban Blomster, Business Development Manager for DuraPulp.

Södra is already involved in technical collaboration with Swt Paper, a privately-owned business development company in Varberg specialising in bespoke paper and cardboard products. This collaboration is making it possible to produce wet-formed DuraPulp demonstrators that showcase the material's potential in bespoke packaging and containers.

DuraPulp is a bio-composite material that consists of specially-selected pulp from Södra Cell and a renewable biopolymer. After additional processing, these two components take on special properties, such as moisture resistance, strength and rigidity. 

James Cropper PLC is an advanced materials group with more than 500 employees and turnover in the region of 80 million GBP.

Additional Info

  • Contacts

    For further information, please contact:
    Anna Altner, Project Manager for DuraPulp Södra, tel + 46 (0)340-63 35 07
    Urban Blomster, Manager Business Development for DuraPulp Södra, +46-(0)340-633732
    Jacqueline M Redman, Strategic Marketing and Innovation Manager
    James Cropper PLC, Burneside Mills, Kendal, Cumbria, LA9 6PZ, Great Britain
    Tel: +44 (0) 1539 722002, DDI: +44 (0) 1539  818392

Published in European News

Södra's Board has decided to invest approximately SEK 700 million to increase pulp production at Södra Cell Mörrum. A new wood-chip plant will be constructed and one of the mill's two pulp lines will be upgraded.

sod morr

In February of this year, Södra's Board decided to invest just over SEK 4 billion to increase capacity at the Värö pulp mill. Investments are now also being made in the Mörrum pulp mill, where Södra currently operates two parallel pulp lines for the production of softwood pulp and textile pulp (dissolving pulp).

"This is another investment that strengthens our market position and competitiveness for market pulp. The expansion of pulp production is a key part of our Group strategy and a crucial feature of our efforts to develop our operation," said Lars Idermark, CEO of Södra.

The existing facility at Mörrum currently produces a total of 380,000 tonnes annually. The investment is expected to increase production to about 425,000 tpy.

"The investment will enable us to meet the growing demands of our customers for softwood pulp and the increasingly popular textile pulp. It will enhance our energy efficiency, result in even higher quality pulp and improve the work environment," commented Gunilla Saltin, President of the Södra Cell business area.

The project includes a new wood-chip plant with two separate wood lines, one for softwood-chip and one for hardwood-chip production, in addition to a refit of the softwood line, where the existing washing equipment will be replaced.

The first phase of the project is scheduled to be carried out in 2014-15 with completion expected March 2016.

Södra Cell Mörrum currently produces high-quality pulp and is the only Södra mill to produce textile pulp, for which demand is growing rapidly. Södra Cell is one of the largest players in the world in the area of softwood pulp and operates three pulp mills in Sweden: Mörrum, Mönsterås and Värö.

Additional Info

  • Contacts

    To find out more, please contact:
    Gunilla Saltin, President of the Södra Cell business area, tel: + 46 (0) 470-855 91
    Annica Gerentz, Director of Communications, Södra, tel: +46 (0)470-894 81

Published in European News
Friday, 13 June 2014 08:51

Södra to expand in Falköping

sod logoSödra has invested in a new rail terminal in Falköping. This investment is the biggest ever made by Södra in a terminal. It has the capacity to handle around 300,000 m3sub of timber per year which will mainly be transported to Värö and Mönsterås.

"We have been working on this project for two years and now we are ready to inaugurate," commented Björn Karlsson, the  manager heading up the project at Södra.

Falköping is in a strategic location in Västra Götaland, close to the members' timber which will serve the expansion at the pulp mill in Värö. Rail distribution permits fast, efficient transport providing both environmental and financial benefits.

The Södra rail terminal is located in Marjarp and covers an area of six hectares - the same as twelve football pitches - and the company has established its own timber terminals there. There is also a 24-hour photometering station.

The terminal is sited in a completely new logistics area covering around 70 hectares, and the municipality of Falköping has also established a modern, cost-effective intermodal terminal known as Dryport Skaraborg. This will pave the way for expansion of the Falköpingspendeln container shuttle service between Gothenburg Harbour and Falköping/Skaraborg.

The municipality of Falköping's initiative involves a number of benefits, with access to shared service facilities, including fuelling stations.

Additional Info

  • About

    For further information, please contact:
    Björn Karlsson, Project Manager, Södra Skog, tel.: +46 (0) 470 893 89
    Christer Segerstéen, Chairman, Södra, tel.: +46 (0) 470  894 50
    Annica Gerentz, Director of Communications, Södra, tel.: +46 (0) 470 894 81

Published in European News

Södra has appointed Valmet of Finland as its main supplier for process equipment for the expansion of the pulp mill in Värö, near Varberg. This order is part of Södra's investment totalling more than SEK 4 billion.

sodra valmet

The order placed with Valmet includes a new continuous digester and upgrades to wood handling, the fibre line, evaporation plant, soda recovery boiler, causticisation, flashdryer, drying machine and baling.

A large portion of the order will be supplied by Valmet in Sweden: The digester and causticisation will be supplied by Karlstad, the fibre line, flashdryer and baling by Sundsvall, and evaporation and the soda recovery boiler by Gothenburg. The wood handling and pulp dryer will be supplied by Finland. Valmet states that the order from Södra is worth around SEK 2 billion.

"We have good experiences of Valmet and feel confident that this project will be a success. We have worked closely together with Valmet in planning the project and it gives us a good start. This investment increases our pulp production, makes the mill more energy efficient and increases its bioenergy supply potential", says Gunilla Saltin, President, Södra Cell.

"We are very pleased that Södra Cell trusted us with this significant order. It is a strong token of our technological leadership and competitiveness in the pulp technology market. Investments in pulp production are active at the moment and Valmet is strongly involved with many major on-going projects", says Jyrki Holmala, President, Pulp and Energy Business Line, Valmet.

Södra has previously purchased groundwork, building work and construction work from NCC with regard to the expansion of Värö. Another major supplier is Raumaster, which will be supplying storage and transport equipment for chips and bark.

When the expansion work is complete, Värö will be one of the biggest pine sulphate pulp mills in the world, with a total production capacity of 700,000 tonnes of pulp per year. These investments will also considerably increase Värö's energy efficiency.

Valmet Corporation is a global developer and supplier of services and technology for the pulp, paper and energy industry. Valmet has revenues of around EUR 2.6 billion (2013) and employs 11,000 staff, and its head office is based in Espoo, Finland.

Additional Info

  • Contacts

    For further information, please contact:

    Jonas Eriksson, Site Manager, Södra Cell Värö
    tel.: +46 (0) 340 628 102

    Annica Gerentz, Director of Communications, Södra
    tel.: +46 (0) 470 894 81

Published in European News

Södra's operating profit improved to SEK 503 million (loss: 99) during the first four months of the year. The profit increase is primarily the result of higher demand and prices and a lower cost level.

sodra larsNet revenue amounted to SEK 5,838 million, corresponding to an increase of 5 per cent compared with the year-earlier period. Consolidated operating profit totalled SEK 503 million and all business areas reported positive and improved earnings. Profit after finance income and expenses improved to SEK 477 million. The result includes income of EUR 18.8 million from the sale of equipment from Södra Cell Tofte.

"We have had a good start to the year with favourable performance and better earnings for all of Södra's business areas. The improvement is due to our own efforts and better market conditions. The trend for the remainder of the year is largely dependent on market and exchange rate developments," commented Södra's President and CEO Lars Idermark.

"Södra's path forward is clear and we are working in line with our newly established Group strategy, in which an important step is the expansion of the Värö pulp mill. The project entails an investment of slightly more than SEK 4 billion and an increase in pulp production capacity from the current 425,000 tpy to 700,000 tpy at Södra Cell Värö," Idermark added.

First four-month period, January-April 2014, in brief

  • Net revenue SEK 5,838 million (5,538)
  • Operating profit SEK 503 million (loss: 99)
  • Profit after finance income and expenses SEK 477 million (loss: 99)  
  • Cash flow after investments SEK 515 million (neg: 118)

Read more: Interim report, January-April 2014

Additional Info

  • Contacts

    To find out more, please contact:
    Lars Idermark, President and CEO, tel: +46 470 894 35
    Carina Olson, CFO, tel: +46 470 892 62
    Annica Gerentz, Director of Communications, tel: +46 470 894 81 

Published in financial News

sod logoSödra has commissed NCC to conduct earth, civil engineering and construction works in connection with the expansion of the Södra Cell Värö pulp mill. NCC will initiate the planning process immediately with construction expected to start in September.

In early 2014, Södra took the strategic decision to invest just over SEK 4 billion to expand capacity at the Södra Cell Värö pulp mill. Pulp production capacity will increase from approximately 425,000 tpy today to 700,000 tpy. On completion of the project, Värö will be the world's largest softwood sulphate pulp mill.

The first step in the expansion of Värö has been the selection of contractor to carry earth work, civil engineering and construction works. As part of the procurement process, Södra has chosen NCC Construction Sweden, which will immediately initiate planning, with construction work expected to start in September.

The investment in Värö will ensure that the mill will be even more energy efficient. Södra Cell Värö is already independent of fossil fuels for day-to-day operations and, with this expansion, will be able to increase production of surplus heat for district heating or electricity generation. 

The project will create 400 full-time jobs over a ten-year period. In the long term, the investment will also create some 20 new jobs at the mill and 220 employment opportunities in surrounding businesses.

Completion is scheduled for the third quarter of 2016.

Additional Info

  • Contacts

    To find out more, please contact:
    Annica Gerentz, Director of Communications, Södra,
    tel: +46 470 894 81

    Jonas Eriksson, Mill Manager, Södra Cell Värö
    tel:+46 340 628 102

Published in European News

Södra has begun collaborating with Swt Paper to install a pilot machine for the production of wet-formed Durapulp. The aim is to customise the material and showcase Durapulp's potential. The pilot machine will make Durapulp for packaging and board products that are directly adapted to customer requirements.


"This is an important step in completing the value chain and clears the way for future business. The pilot machine will involve the use of established production technology adapted to the properties of Durapulp, which will in turn impart unique qualities to the product," commented Anna Altner, Project Manager for Durapulp.

Swt Paper is a small company based in Varberg, Sweden, with recognised experience of developing new businesses with a focus on the needs of customers. By combining Södra's know-how and expertise in DuraPulp with Swt Paper's entrepreneurial drive, Södra hopes to progress Durapulp to the market more rapidly.

"We are combining the best of both worlds and, we are geographically close to each other which will make coordinating the project even easier," added Altner.

The project is partly funded by Vinnova, the Swedish Governmental Agency for Innovation Systems.

Photo: Ola Åkeborn

Additional Info

  • About

    Durapulp is a bio-composite material comprising specially selected pulp from Södra Cell and a renewable biopolymer. Upon further processing, these two components take on special properties such as moisture resistance, strength and hardness.  Durapulp was exhibited for the first time at the Milan Furniture Fair in 2009 in the form of the Parupu children's chair developed by design company Claesson Koivisto Rune.Swt Paper is a privately-owned company focusing on the production of speciality and customised paper and board products. The company has sales of SEK 120 million and 32 employees.

  • Contacts

    To find out more, please contact:
    Anna Altner, Project Manager Durapulp, Södra
    tel: +46 340 63 35 07, anna.altner@sodra.com

    Mathias Frenzel, Head of Development, Swt Paper
    tel: +46 733 14 43 00, mathias@swtpaper.se

Published in European News

2014-03-20 093025Annica Gerentz has been appointed as Sodra's new Director of Communications and will be taking up her post on 1 May. She will be a member of Södra's Group Management team and will report to Group President and CEO Lars Idermark.

Annica Gerentz has an MBA from the University of Stockholm and wide-ranging communication and leadership experience. She joins Södra from Neuman & Nydahl in Stockholm, where she has been working as a management consultant. Before that she spent eleven years at construction and property development company NCC as Senior Vice President of Corporate Communications and Group Management member 2004-2011. Annica Gerentz also worked in the media for many years, principally as a business journalist. She has worked for Dagens Industri, Nyhetsbyrån Direkt and Börsveckan, where she was also Managing Director.

Magnus Berg, who is Södra's current Director of Members and Communications, will continue in his role as Director of Members and Group Management member.

Additional Info

  • Contacts

    To find out more, please contact:
    Lars Idermark, President and CEO, Södra, tel: +46 470 894 35
    Annica Gerentz, incoming Director of Communications, Södra, tel: +46 70 398 42 09

Published in European News
Tuesday, 25 February 2014 16:15

Södra to expand Värö pulp mill

At their meeting on 24 February, Södra's board of directors made the decision to invest SEK 4 billion (around USD 610 million) to implement a major expansion of the pulp mill in Värö. Work is now starting to increase the current production capacity of 425,000 tpy to 700,000 tpy of pulp. This will make the mill one of the biggest in the world in terms of softwood sulphate pulp production.

2014-02-25 161530

"This expansion is a vital part of our strategy, and a must if we are to be able to develop our business. The paper pulp market is growing globally, and now it will be possible for us to continue to grow together with our customers," commented Lars Idermark, CEO and Group President at Södra.

"The expansion at Södra Cell Värö is a measure which will reinforce our market position. We already supply high-quality pulp to a number of different customer segments, and we can now develop and underpin this. Our aim is to become the first choice for customers," he continued.

"This decision means that we will be increasing the current pulp production capacity of 425,000 tpy to 700,000 tpy. As well as increasing pulp production, this investment means that the plant can be made even more energy efficient. Södra Cell Värö is already independent of fossil fuels during normal operation. Our supplies of green energy can be increased still further thanks to this investment."

If the environmental permit process goes according to plan, the expanded mill will be ready for commissioning in the third quarter of 2016. The project will create the equivalent of 400 full-time jobs over a period of ten years. In the long term, the investment will also create 20 or so new job opportunities at the mill and 220 job opportunities within surrounding businesses.

"This is a major investment, and it will be of enormous significance to our members - both industrial and forest owners. This expansion will give us more efficient pulp production while also securing a long-term and profitable market for our members' raw timber products," said Christer Segerstéen, Södra's Chairman.

"With this decision, we are demonstrating our belief in the forests and the opportunities we perceive for our products. We have a renewable and growing raw material in the forests of our members, and a modern and efficient industry," Segerstéen added.

Additional Info

  • About

    Facts: Södra Cell Värö
    The mill in Värö opened in 1972. Its production capacity amounts to 425,000 tpy of chemical paper pulp. The mill employs around 330 staff.

  • Contacts

    For further information, please contact:
    Lars Idermark, Group President, Södra, tel. +46 (0) 470 894 35
    Christer Segerstéen, Chairman, Södra tel. +46 (0) 70 637 98 20

Published in European News
Thursday, 13 February 2014 16:12

Södra suggests SEK 281 million dividend to members

sod logo"2013 saw a strong improvement in earnings for Södra. Operating profit, excluding restructuring costs, increased by SEK 1,329 million compared with last year. Although we reported a loss after restructuring costs, we can propose a dividend to members totalling SEK 281 million," commented Christer Segerstéen, Södra's Chairman.

Södra's executive committee made a decision at its meeting on 12 February on the following dividend proposal to be submitted to the Annual General Meeting on 14 May 2014:


The following will be distributed to members:

4 per cent on shares SEK 112 million
5 per cent on wood deliveries SEK 169 million

2014-02-13 161259In addition, a 5.7 per cent dividend is proposed on subordinated debentures, Series D, equivalent to SEK 7 million.

comments from Chairman Christer Segerstéen:

"It is important for our owners to feel that we adopt a long-term approach to dividend issues and that they see returns on both their venture capital and their wood deliveries. This profit sharing will help to ensure that active forestry and active participation in Södra are profitable.""We have spent a number of good years building up financial stability, which makes it possible for us to give our owners dividend.""The Södra model aims to reward those members who choose to supply all their timber to Södra and who therefore participate fully in our partnership. This proposal reflects this principle," Segerstéen said.

Additional Info

  • About

    For further information, please contact:
    Christer Segerstéen, Chairman, Södra, tel. +46 (0) 70 637 98 20
    Magnus Berg, Director of Communications, Södra, tel. +46 (0) 70 52 894 83

Published in financial News
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