Support for the Mönsterås project was substantial, and 60,000 forest owners from across the country signed up for one or more shares in Skogsägarnas Cellulosa AB (SCB), the company that would erect the pulp mill. This share subscription was facilitated by the fact that payment could be made through timber deliveries.
Members also participated in financing the large industrial package that Södra presented in 1966. Simultaneously, a financing plan called Silveryxan was presented. With an interest rate 1.25 percent above the highest deposit rate, management hoped that members and employees would provide 100 million kronor, which was a prerequisite for other financiers to join the effort. The goal was exceeded.
Owners of a Forest Industry Corporation
Today, members are owners of a large forest industry group, suppliers of timber raw material, lenders to their own company, and customers who buy goods and services from Södra. During timber deliveries, they pay their contributions, funds that are returned when membership ceases. As owners, they participate in financing the need for new equity capital.
Share in Refinement Profits
The distribution model rewards loyal members and those who deliver all their timber to Södra. Refinement profits come from industrial investments, and in the profit-sharing, the ambition is that half is based on timber deliveries and half on invested capital.
Over the last ten years, Södra has transferred over 1 billion kronor of collective equity to members’ accounts for emitted equity capital. Members' paid and emitted equity capital today constitutes a quarter of the total equity
