Swedish forest industry major, Södra has completed a SEK 4 billion (≈ EUR 421 million) capacity expansion at its Värö pulp mill in southwest Sweden. Production has begun at the 700 000 tonne per annum capacity plant and was officially opened September 30 by H.M. King Carl XVI Gustaf of Sweden.
The Swedish forest owners association, Södra, is investing a total of SEK 6 billion (≈ EUR 631 million) in upgrades and capacity expansion at its pulp mills. For its Värö mill the expansion is now complete. The SEK 4 billion (≈EUR 421 million) investment will enable Södra Cell Värö to almost double its annual pulp production capacity, from 425 000 tonnes to 700 000 tonnes. This makes it 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, during the inauguration ceremony.
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 that 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.