In Södra’s operations, the whole tree is used – even the branches and treetops. The forest products are processed into paper and dissolving pulp , sawn timber, cross-laminated timber and other processed products for housing construction, energy products and raw material for liquid biofuels. Södra is an export company with a strong financial position. Both pulp production and the sawmill operations are among the largest in Europe, and the products are mainly sold in international markets.
Södra has control over the entire value chain, from seed to customer, and promotes sustainable development in all stages. Södra’s products can often compete with – and replace – plastic, oil and other fossil-fuel materials and types of energy with a more harmful effect on the environment. The production processes generate a considerable surplus of renewable energy, which is sold to electricity and district heating networks.
We also focus strategically on innovation, with the aim of developing new and sustainable climate-smart products based on renewable raw materials from the forest. Furthermore, we are working steadily to introduce digital solutions into all areas of our operations, from apps and drones that make forestry easier, to automated and connected mills and digital customer offerings.
Södra has four business areas:
Södra Skog purchases forest products from members and delivers them to Södra’s mills. Södra Skog also conducts external trade with wood. In this business area, Södra is also working to develop precision forestry, especially digital forestry services. On behalf of our members, we take care of their forests – from planting and forest management to regeneration harvesting. These activities are based locally in 19 forestry operations areas and 36 forestry districts.
Södra Wood’s operations comprise sawn timber and building systems. Sawn and planed construction materials are produced at Södra’s own sawmills and planing mills. Cross-laminated timber is also produced at the Värö facility. Södra Wood also offers pellets, wood shavings and other by-products.
With its pulp mills at Värö, Mörrum and Mönsterås, Södra Cell is one of the leading producers of market pulp in the world. Paper pulp (also called softwood sulphate pulp, but hardwood pulp is also produced) accounts for most of the production. Dissolving pulp is also produced in the pulp mill at Mörrum. Södra Cell is also a major producer and supplier of biofuels, green electricity, district heating and raw material for liquid biofuels.
Södra Innovation is leading the work with commercialisation and business development within Södra. Efforts focus on such as innovation within growth initiatives, developing Södra’s subsidiaries and building new partnerships. Innovation work in close cooperation with Södra’s other business areas and focus on commercialisation of more products with clear market potential, such as timber construction solutions and biorefinery products.
Södra also has a number of subsidiaries and associates whose activities are in line with Södra’s strategy for sustainable innovation and are enabling the transition to a green society.
Through its Södra Vind subsidiary, Södra owns six wind turbines directly adjacent to the pulp mill at Mönsterås. In 2019, the wind turbines generated 32 GWh (30) of energy.
Södra’s pulp mills are self-sufficient in electricity and also produce a surplus of green electricity. Through its subsidiary, Södra Medlemsel, Södra’s members, employees and partners can purchase green electricity from the pulp mills and wind turbines. In 2019, the number of customers was 5,367 and the sales volume was 82 GWh (83).
SunPine is a world-leading biorefinery in which Södra holds a 25-percent stake. The company produces second-generation renewable fuel from crude tall oil, a by-product of the pulping process. From crude tall oil, SunPine also extracts bio-oil, an alternative to fossil-based heating oils for industrial applications, and rosin, which is used as a binder in printing inks and adhesives. In 2019, SunPine produced 89,000 tonnes of crude tall diesel and 19,000 tonnes of rosin. The other participants in SunPine are Preem, Sveaskog and Lawter.
The wholly owned subsidiary, Södra Silva Holding AB, holds a 49 percent stake in Silva Green Fuel, and the remaining 51 percent is held by Norwegian Statkraft. Silva Green Fuel’s mission is to find a cost-efficient technology for the profitable large-scale production of second-generation liquid biofuels based on woody biomass. The parties have made a joint investment in a demo facility in Tofte, in Norway, which will have a production capacity of approximately 4,000 litres of liquid biofuel per day. Project planning and procurement has now been carried out to enable construction start-up of the process facility in 2020, and production by 2021.
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