With roots in family forestry – our journey through 2025

Below, we have gathered the activities and milestones from 2025 that we are especially proud of.

Wood as a foundation for reduced climate impact
Locally produced CLT from Södra’s family forests has brought new landmarks to life, such as Kaj 16 and Grand Central in Gothenburg and Ripple Residence in Copenhagen. Our wood products make it possible to build houses that breathe the forest – with reduced climate impact from the inside out.

Spira – new pulp for the fibre products of the future
Spira is our new pulp based on roundwood and local agricultural residues. After two successful pilot runs, customers globally have tested the product. The results show that we can combine performance with increased resource efficiency – and meet the demand for materials that make a difference.

Conscious Delivery – fossil-free transport as standard
With up to 85% lower climate impact in Europe, we now offer fossil-free deliveries to customers in pulp and bioproducts. A concrete step towards sustainable logistics – and an important part of our future service offering.

Brasatt – Efficient Planting for the Forests of the Future
Over the past year, BraSatt has continued to improve the ways we can plant forests. The method combines precision and gentle soil preparation to plant seedlings quickly and safely - saving time, reducing costs, and ensuring better establishment. For our customers and members, this ultimately means a solution that strengthens forest growth and long-term value.

OnceMore® x Pinewood – new collaboration
Our textile raw material OnceMore® is entering the outdoor segment through a new collaboration with Pinewood. In spring 2026, two garments with at least 30% OnceMore® will be launched – an example of how we, together with brands, create new product categories with care.

Health and safety – always in focus
The foundation is our systematic work environment efforts with proactive measures, investigations, and training. During the year, we have strengthened the safety culture through behavior-based safety (BBS) and worked with organizational and social work environment (OSA) via the monthly OSA question.

The Safe Member initiative has continued to develop with checklists, training in collaboration with Säker Skog, and increased communication about life-saving routines.
We have also developed a mobile app for safe lone working, to be launched in 2026 – first for Södra employees, with the aim of broader use.

Record Distribution: SEK 19 Million from Södra’s Research Foundation
Working with forests means working with a long-term perspective. Södra’s Research Foundation exists to promote research and development that is significant for forestry and the forest industry in southern Sweden—both today and for the future. In 2025, the foundation awarded nearly SEK 19 million to various research and development projects. This is a record amount and helps build greater knowledge for the future!

AI for smarter forestry
Together with AI company Terra Labs, we are investing in providing members with up-to-date insights about their forests. By combining knowledge of forest owners’ needs with remote data and AI technology, we improve planning and decision-making.

Södra’s new electric woodchip truck in operation
In 2024, we decided to invest in an electric heavy-duty truck. It is now in operation and will be evaluated over two years. This initiative will reduce CO₂ emissions from woodchip transports and marks an important step on Södra’s path toward climate neutrality.

To enable operations, we have built semi-public charging stations at strategic locations—with support from the Swedish Energy Agency. This collaboration strengthens the transition to fossil-free transport.

Carbon Capture Technology Tested in Värö

In November, we decided to launch a pilot project for carbon capture at the Värö mill, with a planned start in 2026. The aim is to build knowledge about the technology and explore how biogenic carbon dioxide can become a valuable raw material in the future.

The pilot project is part of our strategy to increase the value of every tree, strengthen competitiveness, and contribute to more profitable forest management. By testing new technology to capture biogenic carbon dioxide in an industrial environment, we want to explore how this resource can be refined and used in new applications—without increasing the harvest from the forest.

Campaign strengthening family forestry
With Keep Calm and Choose Family Forestry, we have highlighted the value of sustainable family forestry in the British market. The campaign has given customers a stronger narrative around origin, responsibility, and climate impact.

We look back - 20 years since the Gudrun storm
One January day 20 years ago, everything changed. Storm winds felled forest equivalent to four years’ harvesting. Thanks to a huge collective effort, we managed the aftermath – and have since built knowledge for responsible forestry.

The Year of Cooperation
The UN has designated 2025 as the Year of Cooperation. As one of Sweden’s largest cooperative associations, we are proud of our business model and have shown during the year how it creates strength and long-term value.

25 years at Södra
We put people and culture at the centre. This year, we celebrated 56 employees who have worked 25 years at Södra – and shared their stories during the summer.

Xpansion – investments in the future
We have continued to invest in three strategic areas:
• Kinda – major investment in the Kisa sawmill for increased competitiveness and more timber construction.
• Lignin – In 2025, construction began on Södra’s lignin facility in Mönsterås. The plant is scheduled for completion in 2027 and will then become the first commercial factory of its kind in Sweden, making Södra the world’s largest producer of kraft lignin.
• Tannin – 2025 was the year tannin took its place! We have prepared for the start-up in 2026 and explored new applications.

2025 has shown that business value and sustainability go hand in hand. We look forward to continuing to develop solutions together with our customers – with the forest as our starting point and the needs of the market in focus.