Earlier this year, Södra's Board of Directors decided to invest approximately SEK 700 million to increase pulp production at Södra Cell Mörrum. A new chip plant will be constructed and one of the two pulp lines will be modified.
"This is another investment that will strengthen our market position and competitiveness in market pulp. The expansion of our pulp production represents an integral part of our Group strategy and is a prerequisite for developing our business," said Idermark.
The existing facility in Mörrum currently produces 380,000 tonnes annually. The investment is expected to increase production to about 425,000 tonnes per year.
The investment includes a new chip plant and two separate wood room lines, one for softwood chips and one for hardwood chip production, and conversion of the softwood pulp line, where the existing washing facility will be replaced.
The new wood room facilities are scheduled to go into operation in December 2015 and the softwood pulp line in March 2016.
Södra Cell Mörrum currently produces high-quality pulp and is the only Södra mill to produce textile pulp, which is a rapidly growing product area. The Södra Cell business area represents one of the largest softwood pulp producers in the world and operates three pulp mills in Sweden: Mörrum, Mönsterås and Värö.