Södra will invest more than SEK 100 million in the production of biomethanol, a sustainable fuel from forest raw material. The project will commence in autumn 2017 and is scheduled to be ready for operation by spring 2019.
The aim is to produce 5,000 tonnes of biomethanol per year at the new facility to be situated at Södra’s pulp mill at Mönsterås. The long-term aim is to further increase production for passenger, truck and ship transport.
“More and more people are realising why we need to switch to fossil-free alternatives, but products must also move forward. We have access to the best and most renewable raw material available – forests. We also have the industrial expertise required for these types of complex and innovative products,” said Catrin Gustavsson, Senior Vice President of Innovation and New Business at Södra.
The biomethanol will be made from the crude methanol produced by the manufacturing process at Södra’s pulp mill. It will be part of the circular process that already exists at Södra’s mills, in which all parts of the forest raw material are used for the best possible effect. The first delivery will reach the market in spring 2019.
“If Sweden is to achieve the fossil-free climate targets, there must be viable alternatives to the fossil-fuel products that are currently available. This will be a major milestone in that development. It’s also in line with Södra’s own strategy to be totally fossil-free by 2030,” said Henrik Brodin, Business Developer for fuels at Södra.
Södra’s biomethanol is produced entirely from forest raw material, which means that fossil carbon emissions from burning are zero. The production process does, however, account for a marginal fossil carbon emission at present. From a climate footprint perspective, replacing fossil fuel with Södra’s biomethanol will reduce CO₂emissions by about 99 percent – the highest percentage in the market today.
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.
FITNIR Analyzers has been awarded with a project to supply its state-of-the-art online analyzer system, for measuring green and white liquor properties, to Södra Cell Mönsterås.
“This is a very exciting time for FITNIR Analyzers, as we continue to expand our market penetration outside of North America,” stated Tom Sands, President of FITNIR Analyzers. “With our high uptime and measurement precision, the analyzer can provide a means for Södra to reduce liquor variability and increase production. We are optimistic that we will see more interest from other kraft pulp producers worldwide in the near future.”
One analyzer and two field sample stations will be installed at Södra Cell Mönsterås’s recovery and recaust areas. Replacing an outdated titration-based analyzer, FITNIR Online will monitor four streams (raw green liquor and weak wash) from two dissolving tanks, providing liquor compositions for TTA (total titratable alkali) control and RE (reduction efficiency) monitoring. In the recausticizing area, seven streams (clarified green liquor, slaker, four causticizers, and final white liquor) will be analyzed and used for TTA-trim control, slaker, and final CE (causticizing efficiency) control.
“We are looking forward to implementing FITNIR’s analyzers at SÖDRA Cell Mönsterås,” said Håkan Edvinsson, Project Manager at Södra Cell Mönsterås. “It is very important to our pulp mill to have this kind of analyzer for process control and we are satisfied with the high precision and availability FITNIR guarantees to deliver.”
Södra Cell Mönsterås’s system will be delivered in early February and start up is planned for April 2017.
Södra’s pulp mills produce softwood pulp of spruce and pine, and hardwood pulp from birch. The pulp is mainly sold to European manufacturers of tissue, specialty paper, packaging and publishing papers. Södra’s largest pulp mill is Mönsterås. Operating since 1958, it has expanded over the years developing into one of the world's most modern plants. Here, 750,000 tonnes per year of pulp is produced. The mill's core business is pulp production. However, its capacity to serve as a source of electricity is becoming increasingly important. Mönsterås also produces district heating and transforms pine oil into biodiesel. www.sodra.com/en/pulp/production/monsteras/
About FITNIR Analyzers Inc.
FITNIR’s automated online and benchtop analyzers reliably measure complete pulp liquor compositions. Fast, frequent and accurate measurements drive control strategies that decrease process variability and environmental impact for improved efficiencies and profitability. Proven applications for the digester, recausticizer, recovery boiler, ClO2 generator, brownstock washer, and now kappa measurements for wet and dry pulp, FITNIR is the next generation of process analyzers. www.fitnir.com
Södra has just inaugurated the upgraded biological treatment facility for process water at Södra Cell Mörrum. The investment ensures that the mill will comply with the new environmental standards set by the Industrial Emissions Directive (IED), and is part of Södra’s major expansion project now being implemented across all three of its pulp mills.
Södra officially inaugurated a new water treatment plant to meet the latest environmental standards for sustainable industry, in compliance with the Industrial Emissions Directive (IED).
Pulp production is a water-intensive business, so treating and recycling process water to the highest standard is vital for a sustainable business, and thus an area of high priority for Södra.
This upgrade includes the addition of a new disc filter, which is used in the final stage of the treatment process. In addition, the system has been expanded to handle higher volumes of the process water in preparation for future pulp capacity increases.
The environmental impact of Södra’s pulp mills is at such a low level that all of the company’s pulp can be used for paper products that carry the Swan or EU ecolabels. The biological treatment facility has mainly been designed to reduce emissions of nitrogen, phosphorus and TOC (Total Organic Carbon) to the Baltic Sea. Södra aims to be more environmentally conscious than mandated by law, and to exceed the expectations placed on a modern industry.
Thomas Mörnhed, Project Manager
Tel: +46 (0)454-596 09
Valmet has received a major rebuild and new equipment order from Södra Cell for the Värö pulp mill in Sweden. The order is part of Södra Cell's over 400 million euro investment to increase the Värö mill's pulp production capacity from 425,000 tons to 700,000 tons per year.
The order is included in Valmet's second quarter 2014 orders received and is valued at around EUR 200 million.
Valmet's delivery will contribute to Södra's performance by significantly increasing the Värö mill's pulp production capacity and energy efficiency. The order consists of a new continuous cooking plant and upgrades of wood handling, fiber line, evaporation plant, recovery boiler, recausticizing, flash dryer, pulp dryer and baling. On completion of the project, Värö will be one of the world's largest softwood sulphate pulp mills. The start-up of the renewed pulp mill is scheduled in the third quarter of 2016.
"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, CEO, 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.
Significant employment impact
The estimated employment impact of the order is about 650 man years mainly in Sweden. A large part of the order will be delivered from Valmet's operations in Sweden: the cooking plant and recausticizing from Karlstad, fiber line, flash dryer and baling from Sundsvall, and evaporation and recovery boiler from Gothenburg. The wood handling and pulp dryer delivery will come from Finland.
A prerequisite for construction start is the receipt of a permit from the Environmental Court of Appeal.
About Södra Cell
Södra is an economic association with a membership base of 51,000 forest owners in southern Sweden. Södra has built up a considerable production of paper pulp, wood products and biofuels. Södra employs about 3,800 people and has four business areas Södra Skog, Södra Cell, Södra Timber and Södra Interiör.
Södra Cell is one of the world's largest market pulp supplier, with a total annual production of 1.6 million tonnes.
Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.
Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.
The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.
Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.
Further information, please contact:
Jyrki Holmala, President, Pulp and Energy, Valmet, tel. +358 10 676 3210
Anu Salonsaari-Posti, SVP, Marketing and Communications, Valmet, tel. +358 50 453 4262
Lars Dahlqvist, SVP, Pulp and Energy, Valmet, tel. +46 70 606 80 90
Johanna Lindén, Director, Scandinavia, EMEA, Valmet, tel. +46 705 90 95 17
Seasonal improvement together with maintenance shutdowns will improve the market balance further in spring 2013.
For further information, please contact:
Magnus Björkman, President of Södra Cell International, +46 70 265 75 22
Magnus Berg, Director of Corporate Communications, Södra, +46 70 528 94 83
"We had budgeted to produce 50,000 tonnes in 2012. That we have now reached 100,000 tonnes in January of 2013 is a fantastic result," said Dag Benestad, Business Operations Manager for Södra's textile pulp.
It took 12 months to convert line 1 at Mörrum to textile pulp and the company is now looking at converting an additional line to hardwood-based textile pulp, primarily for customers in Europe and Asia.
In Södra’s world everything starts with the forest. The forest provides our constant supply of raw materials and is the essential requirement for Södra’s many different operations.
More than 51,000 forest owners in southern Sweden are members of the economic association that is Södra. They own just over half of all privately owned forest in the area, as well as a group of companies that are successful in both Swedish and international markets. This gives them a market for their raw materials from the forest and at the same time provides the foundation for profitable forestry.
Södra is also a large employer. 3,500 people work for the Group, in areas that range from forestry management and environmental conservation to accounting, sales and product development. The Group’s four business areas produce sawn and planed timber goods, interior products, paper pulp and biofuel. In recent years Södra has also become such a large producer of electricity that the Group now produces more electricity than it uses.
To find out more, please contact:
Magnus Björkman, President, Södra Cell International
+46 (0) 470 89 422
Södra Cell Mörrum enhances process management in kraft pulping with new Metso Kappa Q analyzers.
Metso has delivered a second order for a large Kappa Q analyzer unit to Södra’s Mörrum plant. The delivered analyzer replaces Mörrum’s retiring Metso Kappa analyzers after a long service of over fifteen years. The new analyzer includes the online Kappa and Brightness measurements and, as a new feature to the previous ones, online Fiber and Shives measurements. The fiber properties measurements open a new door to even tighter pulp quality and process control through the whole fiber line from cooking to baling.
“The start up was successful and now the production has got an additional strong tool to improve both quality and capacity. Metso’s way of managing and running things for the installation and start up is very professional,“ says Project Manager Sigurd Björkman, Södra Cell Mörrum.
A first order for a new Metso Kappa Q analyzer was placed in May 2011 to replace the existing analyzer installations. The analyzer had two cabinets both with separate washing and measuring chambers. One of the cabinets was equipped with brightness and the other with kappa and brightness measurements. Additionally, there was online fiber and shive measurement for all process sampling locations.
Södra Cell Mörrum mill is a Nordic pioneer in using Metso Kappa and Brightness analyzers as the key online measurements to manage kraft pulping in producing high quality pulp for global markets. The Mörrum mill purchased their first Kappa analyzer from Metso over fifteen years ago, and Mörrum’s impact on solutions development of the online brightness analyzer, in cooperation with Metso in the mid-nineteen-nineties, was substantial. During their lifecycle, the analyzers carried out altogether 4.5 million measurements. After well over a decade’s usage of two Kappa analyzers and a Brightness analyzer the mill decided to gradually replace the old analyzers with recently released modern Metso Kappa Q technology.
The Södra Cell Mörrum mill has several other Metso analyzers and sensor installations, such as Metso Alkali analyzers in the caustification plant and Polarox inline-measurements of residual chemicals.
Södra Cell is a leading paper pulp producer in the world.
Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries deliver sustainability and profitability to customers worldwide. Expect results.
The Automation segment’s process automation and flow control solutions meet the growing needs of Metso’s customer industries to improve production process efficiency as raw materials and energy sources become scarcer and their costs increase. Our global network of service experts delivers business solutions to our customers that improve their productivity, lower risks and optimize costs.
For further information, please contact:
Sigurd Björkman, Project Manager, Södra, Södra Cell Mörrum
Tel. +46 45 459 608, email: email@example.com
Lottie Lindh, Metso Automation
Tel. +46 54 171 237, email: firstname.lastname@example.org
On 30 May, the Board of Directors at Södra Cell made the decision to implement two energy investments at Södra Cell Värö. These will include a new lime kiln and a new pelleting plant.
"These investments will allow us to further improve energy efficiency at Värö, while at the same time creating profitable processing of our members' wood," said Gunilla Saltin, Acting CEO of the Södra Group and President of Södra Cell.
A new lime kiln will help reduce the consumption of oil and bark, using biofuel in the form of wood powder instead. The lime kiln will allow lime to be reused in pulp production. The existing lime kiln at Södra Cell Värö does not have sufficient capacity to manage sustainably the lime production needed at the mill.
This project also includes construction of a completely new pelleting plant which will supply biofuel to both external customers and the new lime kiln. The raw material for the pelleting plant will come from Södra Timber's sawmill in Värö. Raising production at the new sawmill will also increase volumes of sawdust and planer shavings. The investment will allow these byproducts to be turned into a biofuel with a high energy content which is suitable for sale, but can also be used as a fuel in the new lime kiln. The two investments decided upon form part of the efforts to take advantage of the benefits of scale available at Värö.
"At Värö, we have access to raw materials in the form of shavings and the energy to dry the shavings to form pellets. This means that everything is in place to provide cost-effective production of a highly processed biofuel," Saltin added.
It is estimated that the new lime kiln and pelleting plant will be commissioned in late 2013.
For further information, please contact:
Gunilla Saltin, Acting CEO Södra and President Södra Cell, +46 (0) 470 894 26
Jonas Eriksson, Mill Manager, Södra Cell Värö, +46 (0) 340 62 81 02
The Board of Directors at Södra has decided to start searching for a new CEO and Group President.
As the Board of Directors and CEO have differing views regarding the ongoing development of the company and what is required in the form of leadership and clarity, the Board has decided to terminate the employment of CEO Leif Brodén with immediate effect. At the same time, a decision has been made to extend temporarily the responsibilities of the President of Södra Cell Gunilla Saltin to also include the role of CEO for the entire Södra group. Recruitment of a new CEO will begin immediately. Until a new CEO is appointed, Board Chairman Christer Segerstéen will extend his involvement in the company and take over as Acting Chairman. In this role, he will mainly assist the Acting CEO with ownership and industry issues.
Leif Brodén has been employed by Södra since 1999, initially to head Södra Cell, Södra's biggest subsidiary, and then as CEO and Group President. Södra has developed very strongly during this time, to the benefit of its 51,000 members. Under sometimes very stressful conditions, such as when dealing with the consequences of the Gudrun storm, Leif Brodén has very professionally and successfully led and expanded Södra's industrial operations, forming a group which is financially very stable. Södra has a very strong foundation on which to stand, both financially and in terms of expertise, which will permit ongoing successful development and active participation in future structural changes. However, the Board has arrived at the conclusion that it is time for a new type of leadership, and for a new CEO to work together with the Board to produce and then implement the strategy to follow Södra's current long-term plan, which will remain in force until 2014.
Gunilla Saltin has been the President of Södra Cell, Södra's biggest business area, since 2008. She joined Södra in 2000, and she has previously held the position of Plant Manager at Södra Cell Värö.
"Business at Södra subsidiaries Södra Cell, Södra Timber, Södra Interiör and Södra Skog is successful in their respective areas. This guarantees that Södra will not suffer any adverse effects in the limited time it is estimated to take to find a new CEO," commented Christer Segerstéen, Chairman of Södra.
For further information, please contact:
Board Chairman Christer Segerstéen, +46 (0) 70 637 98 20
Södra's operating profit for the first quarter of 2012 amounted to SEK -41 million. Profit after net financial items amounted to SEK -2 million. Reduced production and a number of market stoppages characterised the first quarter of the year.
"We started the year with most of our sawmills implementing market stoppages, while production at two of our Norwegian pulp mills was down for much of the quarter. Production at our pulp mills was just 73 per cent of our normal capacity. For the sawmills, the corresponding figure was a low 70 per cent," said Group Chief Executive Leif Brodén. Together with the first quarter of 2009, this is historically the lowest level of capacity utilisation the company has seen. January and February experienced the lowest production figures, but they also mark the turning point. All production units have been back to normal production capacity since 20 March.
"We are seeing a recovering pulp market and anticipating economic recovery," said Brodén. Price announcements have been accepted, and as of 1 April the price of NSBK is USD 870 per tonne. We are now seeing strong increases in volumes to China, which up to now has been more or less solely responsible for the increase. We are expecting to see higher prices for sawn timber products over the course of the year, but only small volume increases. Viewed from a new development perspective, it seems that 2012 will be another lost year. The sawmill structure will probably need further streamlining.
"For the rest of 2012, we will see normal capacity utilisation, and we think we will see a profit for the year which is just below last year's result, along with a 7 to 8 per cent return on capital employed," said Brodén.
The pulp market started to show signs of recovery during the first quarter of 2012. The world market price of bleached softwood sulphate pulp went up as inventories decreased.
Pulp production at Södra's five mills over the period amounted to 380,000 tonnes, compared with 522,000 tonnes over the same period last year. This reduction is due to the market stoppages which took place at Södra Cell Tofte and Södra Cell Folla.
Textile pulp is now being produced at Södra Cell Mörrum. Annual production is expected to reach 170,000 tonnes, which will give Södra a competitive textile pulp product based on hardwood.
Production of DuraPulp is ongoing at Södra Cell Värö. This is a material which has attracted significant attention due to its unique properties, combined with the fact that it is renewable and biodegradable. DuraPulp is made up of a specially selected pulp from Södra Cell and a renewable biopolymer. On further processing, these two components provide special properties such as moisture resistance, strength and hardness. For the most part, a lamp and a children's chair have been in the spotlight to date, and work is now ongoing with a number of partners which are testing the material at their production facilities.
The market for sawn timber products remains weak, although supply and demand remain balanced. High raw material prices combined with the weak market are having an adverse impact on profitability.
Södra produced 371,000 m3 of sawn timber products over the period, compared with 391,000 m3 over the same period last year. Production at the new sawmill in Värö is continuing to develop positively towards stable, high production levels as planned.
The market for interior products is hesitant in Sweden and remains weak in Denmark, but both sales and earning capacity are strong in Norway.
Over the quarter, Södra Interiör acquired parquet flooring manufacturer Berg & Berg in Kallinge, employing around 90 staff. The company produces more than 500,000 m2 of high quality parquet flooring per year, with net sales of around SEK 130 million. This acquisition will further increase the range of products available to Södra Interiör's customers, while at the same time providing good opportunities for synergies between the businesses in fields such as marketing, logistics and product development.
As a consequence of the sawmill and pulp mill stoppages, the volumes handled by Södra Skog over the first quarter were 800,000 m3 lower than at normal capacity. The price of softwood pulp timber was reduced by SEK 25 on 16 January to SEK 300 per cubic metre sub (solid volume under bark). Since the end of the quarter on 13 April, the price of softwood pulp timber and the assortment mixed hardwood has been reduced by SEK 20 to SEK 280 per m3sub. At the same time, the price of aspen pulp timber went up by SEK 25 to SEK 325 per m3sub.
Over the period, Södra has installed and commissioned a new machine for applying wax protection to its bare root saplings and "plug plus one" saplings as an effective, non-toxic means of protecting against pine weevil damage. This machine is the first of its type. The wax makes it difficult for pine weevils to gnaw their way through to the bark and has been specially developed for high elasticity. This project is a cooperation between Södra Skogsplantor, Ramlösa Plantskola and Sundins Skogsplantor.
The forestry plans, with a newly prepared plan, have been available online to Södra members since March thanks to a newly developed function on Skogsägarnätet, the forest owners' network. The Skogsägare - forest owners - app was launched at the same time, making it possible to access the forestry plans on the iPhone and iPad.
Productivity improvement within the group continues apace, mainly due to ideas contributed by staff.
"We have implemented 1,281 suggested improvements over the quarter. These ideas will improve our profits by a total of SEK 32 million per year. However, overall productivity fell by 2.95 per cent over the quarter, mainly due to the fact that this figure is calculated on the basis of volumes supplied. March saw the marking of the 20,000th idea implemented since we started our systematic productivity programmes in 2000," added Brodén.
For further information, please contact:
Leif Brodén, CEO, +46 (0) 470 89 435
Klara Helstad, newly appointed Director for Sustainability and Communication, +46 (0) 470 89 333
Carina Olson, CFO, +46 (0) 470 89 262