2 INDUSTRY NEWS Södra starts work on expansion at Värö and Mörrum
Pulp Paper & Logistics
Chips with everything: (left)Pasi Laine, Valmet; Lars Idermark, Södra and Nils Bjelm, NCC Construction at the start of work on the Värö pulp mill. (right) At Södra Cell Mörrum work begins with Janne Flinck, Lars Idermark and Hannu Tähkänen
in photo calls to promote the investments. At the Värö pulp mill, where
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capacity is being increased at a cost of SEK 4 billion (US$539m) they were joined in the ceremony by executives from NCC, the key suppliers to the project. At Södra Cell Mörrum where a new chip plant is being constructed and one of the two pulp lines will be modified at a cost of SEK 700,000 ($94m) they were joined by executives from Valmet. The expansion of the Värö mill north of Varberg involves increasing its production capacity from 425,000 to 700,000 tonnes of pulp per year. Completion is expected in the autumn of 2016, when it will become one of the biggest softwood sulphate pulp
November/December 2014
xpansion work started in October at two of Södra’s mills with top executives joining
mills in the world. “The paper pulp market is
growing globally, and now it will be possible for us to continue to grow together with our customers,” said Lars Idermark, chief executive of Södra. “The expansion at Södra Cell Värö is a measure which will reinforce our market position. We already supply high-quality pulp to a number of different customer segments, and we can now develop and underpin this. Our aim is to be the first choice for customers.” Valmet will be supplying a
new continuous digester and upgrades to wood handling, the fibre line, evaporation plant, soda recovery boiler, causticisation, flash dryer, drying machine and baling. Group president of Valmet Pasi Laine attended the ceremony. Also at the event was Nils
Bjelm, civil engineering segment manager at NCC Construction Sweden, which has been commissioned to carry out the groundwork, civil engineering works and construction works. Commenting on the Södra Cell Mörrum project, Idermark said: “This is another investment that will strengthen our market position and competitiveness in market pulp. The expansion of our pulp production represents an integral part of our Group strategy and is a prerequisite for developing our business.” The existing facility in Mörrum
currently produces 380,000 tonnes a year. The investment is expected to increase annual production to about 425,000 tonnes. The investment includes a new chip plant and two separate wood room lines, one for softwood chips and one for
hardwood chip production, and conversion of the softwood pulp line, where the existing washing facility will be replaced. The new wood room facilities
are scheduled to go into operation in December 2015 and the softwood pulp line in March 2016.
* Further investment of more than SEK 100m ($13.5m) is being made by Södra in its pulp mill in Mönsterås to improve energy utilisation and productivity. The Mönsterås pulp mill is Södra’s largest with annual production of 750,000 tonnes of softwood and hardwood pulp. In an interim financial report for the first eight months of 2014, Södra increased its sales by 2.6 per cent to SEK 11.4bn ($1.54bn) and turned an operating loss of SEK 786m ($106m) into an operating profit of SEK 1.01bn ($136m).
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