Södra Cell Mörrum to produce textile pulp

31 Dec '11

2 min read

Södra's executive committee has set an appropriation limit which will permit a number of offensive investments in 2012. The decision was taken at a meeting held on 7 December 2011.

"In addition to earlier decisions concerning our participation in the development of wind power in 2012, we have now decided on an appropriation limit of SEK 1,895 million," said Group President Leif Brodén.

"This will now permit a number of offensive investments to be made. We are intending to continue investing in product improvements, but first and foremost we now perceive opportunities for further investments in bioenergy. We are taking into account an investment in Lignoboost at Södra Cell Mörrum which will involve a potential investment in new biomaterials in future, as well as making the mill fossil fuel-free. We are envisaging an investment in a new lime kiln at Värö, and we envisage even more pellet production capacity."

"It is important for us to make the most of the business opportunities available to us in bioenergy when our traditional products are finding things considerably more difficult."

Our budget also allows for another investment in textile pulp. The plan is to convert another pulp line for production of textile pulp.

"Hopefully we will have time to identify which of our lines is most suitable prior to the fourth quarter of 2012. Textile pulp offers major benefits in terms of quality, sustainability and ecology, and we believe we will see good growth in years to come. Production of textile pulp will be commencing at Södra Cell Mörrum in December this year."

The forecast results for 2011 indicate an operating profit of almost SEK 1 billion and a return of 10 per cent on capital employed.

"We are seeing a similar result level in our budget for 2012, with uncertain environmental factors," concluded Leif Brodén.

Södra

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