Displaying items by tag: södra

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.

Published in European News
Tagged under

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.

Published in European News
Tagged under

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

Published in Financial News
Tagged under
Södra will raise the price of its softwood pulp to US$ 860.00 and hardwood pulp to USD 820.00 per tonne in Europe effective from 1st March 2013.

Seasonal improvement together with maintenance shutdowns will improve the market balance further in spring 2013.

Published in Financial News
Tagged under
Södra's operating profit for 2012 amounted to SEK -929 million. This is due in part to a major economic downturn and a strong Swedish krona. Despite this, the equity ratio remains high, and the Board is proposing a profit share of SEK 295 million to its members.

Södra's operating profit for 2012 amounted to SEK -929 million (SEK 1,005 million in 2011). Profit after net financial items amounted to SEK -919 million (SEK 883 million in 2011). Net sales fell by SEK 1,384 million to SEK 16,807 million, primarily as a consequence of a major economic downturn with declining markets for Södra's products and strengthening of the Swedish krona. The reported results also include non-recurring items.

  • Forest activities were reduced as a consequence of lower production in the industry.
  • Production ceased at Södra Cell Folla in November. This mill has been in Södra's possession since 2000.
  • A savings programme has been implemented in order to handle the recession, and the aim of this is to reduce the Group's fixed costs by 10 per cent. The measures undertaken included notice of layoffs in the autumn, resulting in 232 jobs being lost.
  • A decision has been made to phase out Södra's involvement in Södra Cell Tofte.

sod figs 2013

2012 was characterised by very weak development in the markets for Södra products. Net sales fell, mainly as a result of lower pulp and timber product prices and the strengthening of the krona. Production at Södra's industries was also affected by the stoppages which took place at the start of the year.
 
Comments on the results from Acting CEO and Group President Gunilla Saltin:

ola"We were facing a relatively weak economic situation at the start of the year, and it was hoped that the situation would gradually improve. But the opposite was true. As the year continued, we were affected more and more by the major recession in Europe, which is our primary market. This extremely weak market situation has affected all our business areas," said Gunilla Saltin, Acting CEO and Group President for Södra.

The results reported for 2012 include a number of non-recurring items, such as the costs involved in the closure of Södra Cell Folla and costs linked with organisational changes.

"We hope we will see an upturn in the markets for our products in 2013. The economic situation remains uncertain, but towards the end of the year we were seeing some stabilisation, mainly on the pulp market. The situation remains uncertain for timber products, but we are seeing signs of a certain amount of improvement. We do not think that present exchange rates will be altered to any great extent.

"When it comes to finding a way out of the economic crisis affecting the world economy, this is something our politicians need to do. As far as Södra is concerned, we need to take responsibility for the company and attempt to deal with the prevailing circumstances. This is why we have implemented a series of measures in order to enhance our competitiveness - measures that will take effect over the year.

"Despite the weak results, Södra's equity ratio remains high, amounting to 61 per cent at the end of the year."

Business in 2012
2012 saw the start of permanent production of textile pulp on one of the pulp lines at Södra Cell Mörrum. A total of just under 100,000 tonnes of textile pulp were produced over the year.

Work on the long-term development of energy activities is continuing within the Group. Decisions were made in 2012 to install a new lime kiln and pellet plant at Värö. 

"These investments will allow us to further increase energy efficiency at the Värö plant, while at the same time creating profitable processing of our members' raw timber. We are benefiting from the fact that we have access to raw materials in the form of shavings and the energy to dry the shavings to form pellets, all in the same place," said Gunilla Saltin.

Having spent a relatively long time working on creation of profitability at Södra Cell Folla, where CTMP (chemithermomechanical pulp) is manufactured, Södra Cell made the decision to cease production from November 2012. In December, a declaration of intent was signed between Södra and Mayr Melnhof Karton in which Mayr Melnhof Karton stated its intention to take over the pulp mill and resume production.

Pulp production amounted to 1,782,000 tonnes, compared with 1,912,000 tonnes in 2011. This reduction is explained by the stoppages which took place at the Norwegian mills at the start of the year and the decision to cease production at Södra Cell Folla. 

Production of sawn timber products increased by 18,000 m3 to 1,399,000 m3. Södra Timber's operating profit was affected by lower prices for finished goods, the strengthening of the Swedish krona and the high cost of raw materials. The business was also affected by the fact that the commissioning of the new sawmill in Värö has taken longer than planned. The new plant is expected to reach its intended production level early next autumn, almost a year later than originally planned. 

Södra Interiör's net sales increased by SEK 41 million to SEK 1,281 million. Weak demand combined with price pressure from competing cut-price imports led to a decline in operating profit. 

The affiliated member area at the end of the year amounted to 2.36 million hectares, with 50,888 members. Södra Skog managed a total of 15.6 million m3sub of raw timber, compared with 17.0 million m3sub in the previous year.

Södra suggests SEK 302 million profit share

"2012 saw Södra making massive losses. Despite this, Södra's strong financial position means that we are proposing to the meeting a transfer to members totalling SEK 295 million," said Christer Segerstéen, Chairman of Södra. 

Södra's executive committee made a decision at its meeting on 14 February on the following suggested dividend to be submitted to the Annual General Meeting on 15 May 2013:

Dividend
The following dividend  will be distributed to members:

3 per cent on deposited capital SEK 80 million
3 per cent patronage refunds 
(on wood deliveries) 
SEK 109 million

Contribution issue
SEK 106 million will be transferred to members' deposit accounts through bonus shares. This contribution issue amounts to 10 per cent of outstanding deposited capital contributions.
   
In addition to dividends and a contribution issue, a 5.7 per cent dividend is proposed on debenture contributions, Series D, equivalent to SEK 7 million.

Comments from Chairman Christer Segerstéen

ola 1"2012 saw massive losses for Södra, but despite this we are proposing a profit share of SEK 302 million. This is because it is important for Södra's owners to receive returns on their venture capital and wood deliveries," said Christer Segerstéen, Chairman of Södra.

"Adopting a long-term strategy in terms of our dividend will help to make active forestry and active participation in Södra profitable for our members. The Södra model aims to reward the members who choose to supply all their timber to Södra and who therefore participate fully in our partnership. This proposal characterises this principle," said Christer Segerstéen.

"Södra's balance sheet, which has been built up over a number of good years, makes it possible to propose a dividend to our members despite the massive losses we saw in 2012."

Published in Financial News
Tagged under
Tuesday, 19 February 2013 14:08

Södra to liquidate ownership of Södra Cell Tofte

Södra has decided to divest the Tofte chemical pulp mill in Norway. This decision has been made as a result of longstanding difficulties with unsatisfactory profitability at the mill. A process has begun to sell the mill.

Södra Cell's management has been given the task of creating a divestment plan for Södra's ownership of the mill.

"We have been attempting for some time now to make Södra Cell Tofte profitable. The commitment and  expertise of the staff have kept quality and productivity at a high level, and they have fought valiantly to keep production costs low. Despite everything we've done, we are now forced to conclude that we have failed to reverse the trend," said Gunilla Saltin, Acting CEO of Södra and President of Södra Cell.

The aim is for Södra to end its involvement in the mill during the second quarter of this year.

Published in European News
Tagged under
Friday, 25 January 2013 09:00

Södra celebrates 75 years in 2013

sod logoIn 2013, Södra will have its 75th anniversary. Södra's anniversary will be celebrated and marked in several ways.

The theme of the 75th anniversary celebration is the past, the present and the future, where the focus is on Södra's stability, sustainability and development. It is thanks to the development and innovations that we have achieved that have made Södra what it is today and it is with continued investment and sustainable pursuits that we will face the future.

Södra's 51,000 members, who work hard running their family-owned forestry enterprises, are the backbone of the company. Together they manage a legacy, a raw material, as well as biological diversity, but also continue the hard work started by previous generations to restore forests in southern Sweden.

During the 75 years that Södra has existed, it has been our fundamental goal to support family owned and operated forestry enterprises by creating opportunities for the sale of our member's forest products, but also to develop products and services that will help increase their productivity and profitability. Södra will continue the work to ensure future profitability, sustainable production and encompassing support to help in the work done by family-owned forestry enterprises.

A large, public 75th anniversary celebration, will be held during the international forestry fair Elmia Wood on 5-8 June 2013. The anniversary will also be noted in articles in the membership magazine Södrakontakt, at Södra's annual meeting and at board meetings.

Published in European News
Tagged under
Friday, 18 January 2013 12:45

Södra leaves Russian pulp mill project

sod logo

Södra decided to leave the project with Angara Paper company to build a Eniseyskiy LKhK pulpmill in Russia. Swedish company was invited to take part in construction of a greenfield mill in southern Siberia.

 

Södra’s role in the project was to be an industrial partner and to handle the marketing and sales of pulp from the planned mill.

 

“The scope of the project has changed from the original plan. From our perspective, the project no longer fits in with our future strategy and we have therefore chosen not to continue with our involvement”, said Gunilla Saltin, Acting CEO and President of Södra Cell.

 

The project of Eniseyskiy pulpmill has long and difficult history. At the APEC summit in Vladivostok Japanese company Marubeni finally concluded a contract with Angara Paper to finance construction of the mill and purchase of equipment. Marubeni is also going to build a port on Yenissey river for the mill. Angara Paper’s project will be financed at minimal interest rate by the Japanese bank for international cooperation.

 

Total investment scope of the project is $3.2 billion. It is planned to establish annual production of 900,000 tons of softwood bleached pulp, 300,000 tons of dissolving pulp as well as 380,000 cu m of lumber and 100,000 tons of pellets. The project will create 4,500 jobs, including 3,500 in logging.

 

Södra Cell is world’s third largest producer of market pulp with annual volume of two million tons.

 

Published in Asian News
Tagged under
foll sodSödra and Mayr Melnhof Karton have signed a Letter of Intent where Mayr Melnhof Karton intends to purchase 100% of the shares in Södra Cell Folla AS and thereby take over Södra's pulp mill in Follafoss.

Mayr Melnhof Karton intends to resume operations at Folla as soon as possible, hopefully early in 2013. The parties' intention is to close the deal during the first quarter of next year.

Södra's pulp mill in Follafoss, Norway, has a capacity of 105,000 tpy of CTMP pulp. Södra announced its intention to divest the mill earlier this year. 

Mayr Melnhof, based in Vienna, is a world leader in the field of coated, recycled cartonboard and Europe's leading manufacturer of folding cartons. The group's business is focused on MM-Karton and MM-Packaging.

Published in European News
Tuesday, 18 December 2012 15:28

Södra Timber Värö invests in drying capacity

saw varSödra Timber has procured three progressive kilns for the sawmill in Värö to meet the needs of the planned increase in production. Installation will start immediately and production is expected to start by September 2013.

Södra Timber Värö is planning to introduce a three-shift pattern in September 2013, involving a capacity of 600,000 cubic metres.

"We are seeing an increase in the demand for Södra Timber products from Asia, as well as the USA and a number of countries in Northern Europe. This is why we are planning to introduce a third shift in the autumn. Production will be 80 per cent spruce and 20 per cent pine, which is optimal for the catchment area of the Värö sawmill," said Håkan Svensson, Acting President of Södra Timber. 

This increase in production will require additional drying capacity.

saw var1

"The decision was made to invest in progressive kilns from Valutec, as their operating costs are low. These are fitted with heat recovery and require no staffing. These progressive kilns are also particularly well suited to drying side boards containing a lot of water. This means that they will provide a good complement to the existing chamber kilns, which are more suited to centre cut volume," added Svensson.

The sawmill is currently being fine-tuned so that it can achieve the planned production rate by next autumn.

Published in European News
Tagged under
Page 10 of 16