VAXJO, Sweden, Sept. 30, 2016 (Press Release) -The equipment is in place and production has now commenced. Södra’s new pulp mill in Värö was officially inaugurated on Friday 30 September. "We are delighted to announce that production is under way. Our focus in the immediate future will be on ramping up the production rate," said Gunilla Saltin, Business Area President of Södra Cell.
Södra is investing a total of SEK 6 billion (around half a billion USD) to expand for the future. Some SEK 4 billion has been invested in the pulp mill in Värö. The expansion is now complete and will result in an increase in pulp production capacity from today’s 425,000 tonnes to 700,000 tonnes annually. The mill will thereby become one of the world’s largest, most modern and energy-efficient mills for the production of softwood sulphate pulp.
"The expansion is an important part of our strategy and a necessary move if we are to develop our operations. The paper pulp market is growing globally, and we will now have the opportunity to meet this demand and to continue growing together with our customers. We already deliver high-quality pulp to several different customer segments, which we will now be able to develop even further. This expansion will allow us to further strengthen our market-leading position and remain our customers’ preferred supplier," said Lars Idermark, President and CEO of Södra.
Additional services in the forest industry
The investment in Värö is part of Södra’s Group strategy. The expansion is a prerequisite for generating long-term value for Södra’s members and for its pulp customers in the global market.
"The forests owned by Södra’s members provide the company with a stable, sustainable source of fibre which Södra intends to develop to the full to keep pace with customers’ increasing demands. In the short term, the focus is on making sure the startup tonnage is brought up to premium quality as smoothly and quickly as possible," said Gunilla Saltin, Business Area President of Södra Cell.
Södra was founded in 1938 and is the largest forest-owner association in Sweden, with a membership of more than 50,000 forest owners. We engage in modern and responsible forestry, and operate state-of-the-art mills in which we process our raw material. Through value-generating relationships and a long-term approach, Södra is leading the way for the next generation of forestry.