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 three 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 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. These include Trivselhus, one of the leading house manufacturers in Sweden, as well as producers of renewable energy and fuels.
Södra’s subsidiary, Trivselhus, is one of the largest house manufacturers in Sweden and sells premium homes under the Trivselhus brand and Nordic Ecolabelled homes under the Movehome brand. Homebuyers can design their own personal home on the company’s website using the ‘Build online’ concept and receive a direct offer. Homes are delivered almost exclusively on a turnkey basis and in 2019, Trivselhus was named Zero Defect Homebuilder of the Year by trade association GarBo for its deliveries of defect-free homes to end customers at the time of handover inspection.
Through its own land development company, Trivselhus partners with landowners to convert raw land into finished lots. The company has just over 25 sales offices, from Malmö in the south to Luleå in the north, and is also represented in the UK. Trivselhus currently has approximately 200 employees. In 2019, the company delivered 285 homes, generated sales of SEK 1.2 billion and posted an operating loss of SEK –57 million (profit: 1), mainly due to a declining market.
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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