On behalf of more than 52,000 owners, Södra’s mission is to promote the profitability of their forest estates, and to secure markets for their forest raw material. This mission also includes promoting high-yield and valuable forest production combined with nature conservation and cultural considerations, and monitoring and promoting its members’ business policy interests, particularly in regard to property ownership rights.
Södra’s overarching objective is to be an even more sustainable, profitable, innovative and resource-efficient growth company by 2025. Our success will be based on long-term profitability and a strong financial position. That will enable the development of our business and the distribution of profits to our owners.
Södra’s Group-strategic focus until 2025 is to create profitable and sustainable growth in an ever-changing world. We will continue to develop our existing products, but also increase our focus on processing, innovation, resource-efficiency, our customers and market and maximise value from digitisation. All future growth should be profitable and sustainable with climate-smart solutions along the entire value chain – from forest to customer.
Growth is essential for generating long-term value and Södra needs to grow in order to evolve and be competitive, but not at the expense of profitability. The growing stocks of Södra’s owners are increasing due to responsible Swedish forestry, as a result of replanting, proper care and long-term management. Södra therefore has access to large supplies of raw material that require markets.
At the same time, market demand for Södra’s existing products is growing. A key component of increased profitability is greater efficiency and better utilisation of joint resources.
The ability to remain profitable in an ever-changing business environment requires an organisation that is both stable and flexible. Stability is required to meet the impact of external factors. Flexibility is required to enable continued adaptation, to meet negative external changes and to offensively leverage positive trends.
Södra is already a stable company but the aim is to further strengthen stability and flexibility during the strategy period.
Sustainability – economic, social and environmental – permeates the strategy and shall be an integral part of business decisions in order to realise value across the operations. As part of this process, the focus on resource-efficiency and on maximising the value generated by of our existing raw material will increase.
This will take place by making full use of residue flows from forestry and our sawmills and pulp mills (such as processing) and by utilising and contributing to circular value chains (such as our OnceMore™ solution). Södra will intensify these efforts in order to achieve a higher rate of resource utilization.
Part of Södra’s growth strategy is to strengthen our customer and market focus, to manage a range of external trends, both challenges and opportunities, to continue leading sustainability efforts as an integral part of our business, and to increase the level of digitisation in the organisation. During the strategy period, the aim will be to increase our understanding of consumer needs and the steps that are closer to end customers in the value chain.
Digitisation enables profitable growth and builds flexibility in an ever-changing world. During the strategy period, Södra will work actively with digitisation as a tool for further increasing the Group’s productivity and accelerating the further strengthening of our competitiveness.
Södra’s product portfolio mostly comprises high-volume products, such as pulp and sawn timber. Innovations in existing product areas and increased processing are important for the development of our customer offering.
At the same time, innovation is a priority for the development of applications for forest owners’ raw material. Commitment to efficient commercialisation of new products with clear commercial potential will increase. Södra’s ambition is to strengthen its position in the bioeconomy with innovative products and solutions.
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