Displaying items by tag: södra

Södra is raising its purchase price for pulpwood and pine logs. Demand for both softwood and hardwood pulp is high, while the market for sawn timber remains strong. To ensure continued high levels of supply, Södra is raising its purchase price for pine logs by SEK 30/cubic metre of solid volume underbark (m ᶾ sub) and introducing a contracting premium of SEK 25/m ᶾ sub for softwood and hardwood pulp. The price changes will apply from 1 February 2018.

“The strategic investments in Södra’s pulp mills in recent years have led to a steady increase in softwood pulpwood consumption and demand for softwood pulp. This market situation presents ideal conditions for increased forest thinning which, in the long term, will further strengthen both the value and quality of Swedish forests,” said Olof Hansson, President of the Södra Skog business area.

For questions, please contact:
Olof Hansson, President of the Södra Skog business area,
Tel: +46 (0)470-857 67

Sofia Petersson, Wood Supply Manager Södra Skog,
Tel: +46 (0)470-859 86

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. 

Södra is now investing in more forestry drones. This digital technology speeds up the work of field staff at the same time as it makes it more comprehensive and safer.

“We have identified numerous applications where drones can enhance the efficiency of forestry work, not least when making inventories of storm-damaged forests. By purchasing equipment and investing in raising skills, we are taking another step towards the development of tomorrow’s digital forestry operations,” said Johan Malmqvist, Project Manager at Södra.

Since the end of 2015, Södra has trialled the use of drones for applications including inventories of forest damage. Test outcomes have been favourable and major potential has been identified for the digital technology moving forward. This summer, the Swedish Camera Monitoring Act was amended, which has simplified the use of drones in forestry.

Södra is now taking further steps with digital development in the form of a considerable investment in drone technology and personnel skills development.

“We have purchased drone equipment for all our forestry operations areas and, in the autumn, we trained 51 of our forestry professionals as drone pilots. This means we are now well equipped to further develop use of the technology,” said Johan Malmqvist.

Drones are digital aids that enhance the efficiency of manual tasks for Södra’s field staff.

“The technology is extremely cost-efficient. It is possible to obtain a good overview of the forest in very little time. The major advantage is from not having to waste unnecessary amounts of time on checks. Drones enable you to quickly see if and where a manual inspection or action is required. This enables more efficient work methods that, by extension, benefit our forest owner members. Moreover, drones make work safer for forest inspectors, not least when making inventories of windfalls following a storm,” said Johan Malmqvist.

But drone technology is not only of great benefit when making inventories of forest damage.

“For example, another potentially useful application is planting and cleaning. Gathering decision data for deciding actions and planning is another. An eye in the sky provides a much-improved view of conditions than looking through dense forest at ground level,” said Johan Malmqvist.

For more information, please contact:
Johan Malmqvist, Project Manager at Södra Skog
Tel: +46 (0)470 893 69
E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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.

Between January and September, Södra delivered 15 times more green electricity to the public electricity grid compared with the same period in 2015. Deliveries are equivalent to the total electricity consumption* of 7,000 houses per year. The electricity is produced from the forest raw material that is processed at Södra’s mills.

“We are very pleased with this substantial increase. It shows how we can use innovation and investments in green industry to meet important societal needs,” said Roine Morin, Sustainability Director at Södra.

During 2017, Södra has delivered 15 times more electricity compared with the same period in 2015, an increase from 11 to 167 GWh**. Electricity is mainly generated at the three pulp mills in Värö, Mörrum and Mönsterås. In 2016, major investments were made at these mills, that provided the basis for the increase in deliveries. The largest investments were made at the Värö pulp mill, which increased its electricity generation by almost 70 percent, from 232 to 390 GWh, compared with January to September 2015.

“The electricity is a by-product created through the use of resource-efficient solutions in production. This is one example of how the forest has a key role to play in the transition to a bioeconomy,” said Roine Morin. 

Södra has been self-sufficient in green electricity since 2007. At the same time, Södra is working to reduce its own electricity consumption. One of Södra’s sustainability targets concerns the efficient resource utilisation of electricity, with the aim of reducing consumption by at least 10 percent by 2025.

*Including household electricity, heating and hot water in a house with an average consumption of 25,000 kilowatt hours (kWh) per year.

**Gigawatt hours – 1 GWh = 1,000,000,000 watt hours.

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. 

Demand for softwood pulpwood is high. The strategic investments in Södra’s mills have now led to higher fibre consumption. Södra is therefore raising the price of softwood pulpwood to SEK 320/mᶾ sub. The price of the small-diameter and softwood block range will also be raised by SEK 25/mᶾ sub.

“The high demand for both sawlogs and softwood/hardwood pulpwood is gratifying for forest owners. The price increases will create excellent conditions for increasing the level of thinning in members’ forests,” said Olof Hansson, Acting President of the Södra Skog business area.

Markets for sawn timber remain favourable, and therefore demand for pine and spruce logs. Södra has therefore decided to incorporate the existing contracting premium of SEK 25/mᶾ sub into the basic price.

The new prices will apply for contracts signed as of 23 October.

For questions, please contact:
Olof Hansson, Acting President of the Södra Skog business area,
Tel: +46 (0)73 - 071 18 33
 E-mail: This email address is being protected from spambots. You need JavaScript enabled to view it.

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. 

Demand for products from the Swedish forest is on the increase in China. In 2017, Södra increased sales of paper pulp by more than 50 percent. At the same time, Södra’s sales of sawn timber in the country have increased steadily since 2010.

Södra’s core markets for both paper pulp and sawn timber are located in Europe. However, China is currently one of the fastest expanding markets. In January–September this year, Södra’s sales of paper pulp increased by more than 50 percent to the country compared with the same period in 2016. Uses for paper pulp include cardboard packaging, and toilet and kitchen paper.

“Growth in China is robust. With the increased volumes provided by our investments we can tap into this growth. Demand for raw material from certified forest is on the increase with a clear focus on sustainability, and this is something we can contribute towards,” said Magnus Björkman, Vice President Marketing and Sales, Södra Cell International.

The market is showing no signs of slowing in the near future and there is also strong pressure for sawn timber to China. Södra began delivering sawn timber to the country in 2010 and sales have grown each year. Södra established a sales office for sawn timber in Shanghai in 2015. To meet rising demand in the region, an additional sales office was opened in Hong Kong on 1 October.

Starting in 2018, Södra’s position in China will be further strengthened when a new purchasing office is established in Shanghai, under the name of Södra International Trading. Focus will be on purchasing indirect materials, such as machinery and processing equipment.  

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.

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.

Facts:
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.

Södra and Svenskt Butikskött have now signed a cooperation agreement to develop fully biodegradable, fibre-based packaging for Svensk Butikskött’s meat products. Södra’s renewable material Durapulp is to be used as the packaging and it is hoped that the new packaging solution will be available on store shelves in as little as a year’s time.

Many Swedes purchase meat at least once a week. To ensure that the meat they buy retains its quality, packaging is required that meets the high sustainability and safety demands placed on foodstuffs. Svenskt Butikskött now wants to take this further and develop packaging that also lives up to the company’s own demands for ecological sustainability. This is why it has become involved in a new, major packaging project in cooperation with Södra.

Renewable materials from forest raw material
DuraPulp has been developed by Södra from forest raw material. It is a biodegradable and renewable material that can replace fossil-based products. The material is stable, water resistant and highly durable. It is malleable and can be used for every type of product, from manufacturing materials to sophisticated design.

"We are very pleased and excited about our new cooperation with Södra," said Thomas Östlund, owner of Svenskt Butikskött. "We are passionate about ecological sustainability and we hope that the new agreement will enable us to develop 100-percent biodegradable, fibre-based packaging for our products. Our current packaging solution is recyclable, but not biodegradable and compostable – which is not sufficient for a company with our ecological profile."

"Both producers and consumers are demanding sustainable alternatives to packaging made from fossil-based materials like plastic," said Erik Bengtson, business developer at Södra. "This is where the forest and the forest industry have a lot to offer. We have a fantastic, renewable commodity and we have the knowledge and experience to develop new solutions that are required for a climate-smart future. DuraPulp is a 100-percent sustainable alternative that is well-suited for packaging intended for sensitive substances such as food."

The agreement implies that the development and prototype production will commence already during the summer and is expected to be completed in the autumn. If there is a positive result for the prototype, the work will continue to pre-industrial production and initial customer testing before the end of the year. It is hoped to develop packaging that can already be used within about a year.

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.

Södra’s operating profit for the third four-month period amounted to SEK 452 million (502). The full-year profit is in line with expectations and the board proposes a distribution of profit totalling SEK 602 million.

“2016 was a year of transition for Södra, with major changes due to robust investment and restructuring but also lower prices for our finished goods. Against this background, operating profit of SEK 452 million for the third four-month period is a show of strength, while full-year profit of SEK 1,005 million is completely in line with expectations”, says Lars Idermark, President and CEO, in a statement.

Consolidated net sales for the third four-month period amounted to SEK 6,214 million (6,081), and for the full-year 2016 amounted to SEK 18,482 million (18,267). The operating profit for the period totaled SEK 452 million (502) and for the full-year SEK 1 005 million (2 162). Return on capital employed was 7 percent (17) and the equity ratio was 55 percent (62).

“Södra’s efforts to create a stronger company in a more global and competitive market are continuing. The extensive investments of recent years are among the largest in Södra’s history, and we are strengthening our customer offering and securing markets for our members’ forest products,” says Lars Idermark.

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. 

In November, the Södra Foundation for Research, Development and Education decided to contribute an additional SEK 10 million to research projects connected with forestry. Six different projects have been awarded grants, one of which focuses on addressing the future market for wood fibre-based products by developing new fibres from existing processing environments.

To meet the requirements imposed on new cellulose-based products, such as paper and packaging, it must be possible to regulate and vary the core properties of the pulp used. Chalmers University of Technology has launched the project AvanCell: New Fibres from Existing Processing Environments, and has been awarded SEK 8 million to do research on this topic.

“The project aims to establish new knowledge about how we can regulate the properties of pulp. If we learn more about how to utilise the processing environment and the chemistry in the final bleaching stage, we can change the flexibility and interaction properties of the fibre, something that is highly sought after by both pulp customers and consumers” said Laila Rogestedt, Senior Vice President of Innovation and New Business at Södra.

Research grants have also been awarded to several projects in the field of sustainable forest management. The grants were presented to researchers at the Swedish University of Agricultural Sciences and Skogforsk for studies related to the damage of saplings, birch production, more effective use of harvesting data and work environment issues pertaining to forestry machinery.

Project contributions decided in November 2016

The Södra Foundation for Research, Development and Educationapproved the provision a total of SEK 10,460,000 in funding for new projects. Altogether, the Foundation has provided SEK 15,591,000 in project funding during the year

Facts
The mission of the Södra Foundation for Research, Development and Education is to promote research and education of significance to forestry and forest industry operations in Southern Sweden.

The projects that are granted funding include fields of research and development that are relevant and important for both forestry and the forest industry. Since the inception of the Foundation in 1995, some 150 research projects have been awarded grants. The findings of the research projects have been significant both from a social perspective and for the forest industry.

The Foundation holds four Board meetings per year, at which grant applications are considered. Information about the rules regarding applications for grants from the Foundation is available on Södra’s website.

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.

Anna Belfrage has been appointed Chief Financial Officer (CFO) of Södra. The position of CFO also includes responsibility for purchasing and IT. She will assume her position on 16 January 2017 and will serve as a member of Group Senior Management, reporting to President and CEO Lars Idermark.

Anna Belfrage (54) holds an MBA from Lund University and her most recent position was CFO and Interim President of Beijer Electronics, which she left in 2015. She also served as CFO at ABS Group, part of Cardo Group, between 2004 and 2010, and prior to that held various positions in industrial companies such as Dresser Wayne Fueling Systems, Obducat, Lund Eastern Energy and Åkerlund & Rausing.

“Anna Belfrage has in-depth industrial and financial experience that will benefit Södra’s continued efforts to strengthen our competitiveness, growth and long-term profitability,” said Lars Idermark, President and CEO.

“I am looking forward to joining Södra and to contributing to the company’s journey into the future,” said Anna Belfrage.

Anna Belfrage will succeed Jörgen Lindquist, who was appointed President of the Södra Wood business area in spring 2016. Anna Belfrage will be based in the company’s head office in Växjö.