Södra SKr2bn investment planned in 201212 December 2011
Södra is investing nearly SKr2bn in 2012, though the lion’s share will go on “non-traditional products” such as bio-energy, wood pellet production and textile pulp.
The investment decision was taken at a Södra executive committee meeting on December 7.
“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."
The forecast results for 2011 indicate an operating profit of almost SKr1bn and a return of 10% on capital employed.