Södra, Sweden, this week reported that it will apply for an environmental license to extend production at Södra Cell Värö in Sweden. The company plans to increase production capacity from the current 425 000 metric tpy to 700 000 metric tpy.
"Södra Cell is currently a leading player in the field of market paper pulp production, and this is a position that we want to retain and develop. This is why we have decided to apply for an environmental license to expand our pulp mill in Värö," said Lars Idermark, CEO and group president of Södra. "We are currently working on reviewing our group strategy, and we expect this work to be complete in early 2014. Expansion of Södra Cell Värö is one of the measures that can reinforce our position and create sustainable profitability. This expansion will result in more efficient production and also pave the way for a long-term, profitable market for our members' wood raw materials."
Gunilla Saltin, CEO of Södra Cell, noted that "our pulp mill in Värö offers plenty of potential for expansion. This expansion will allow us to develop still further the range of high-quality softwood products that we offer to our customers. Our aim going forward remains to be the first choice for our customers. Värö currently supplies high-quality pulp to a number of different customer segments, and this is something that we want to develop and underpin, As well as increasing pulp production, this investment means that the plant can be made even more energy-efficient. Södra Cell Värö is already independent of fossil fuels during normal operation."
A final decision on the investment may be made once the licensing process has advanced far enough for what is known as a commencement permit to be issued.
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