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Management Side
Södra to Apply for a New Permit for Expansion
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Stockholm, Sweden 05 May 2015 -- Södra is to apply for a new permit for expanded production at its sawmill in Mönsterås. A permit has been sought for 800,000 cubic meters. The current permit is for 450,000 cubic meters.

"We have strong confidence in our sawmill in Mönsterås. This permit application is important for the sawmill's future, growth and profitability. On 12 May, a consultation meeting will be held with local residents. The application will subsequently be submitted to the County Council in the early summer," says President of Södra Wood Håkan Svensson.

As a result of production enhancements, the sawmill has now reached the ceiling of the current environmental permit. Södra wants to continue to improve and develop the operation.

"Already now, we have the capacity to process 480,000 cubic metres and in the near future, 500,000-550,000 cubic metres. At that point, new investments will be required. A successive increase will take place, but we are applying for a permit now that will allow for growth," says Håkan Svensson, President of Södra Wood.

Södra is confident in Mönsterås as a sawmill that offers several advantages.

"The sawmill in Mönsterås is a modern facility with an excellent location. This location, next to the pulp mill, provides several integration benefits, for example, the sawmill gets the heat for its dryers from the pulp mill. The sawmill also has access to its own harbour and can quickly ship its goods to the world. From the perspective of forest ownership, the Mönsterås catchment area is important and we want to prepare to capitalize on the forest owners' increasing growth in the forests," says Håkan Svensson.

The increased production is primarily destined for the UK and US, which are two currently expanding markets, where Mönsterås is already a large player.

"We also foresee large potential in China. We have doubled our volumes to China in the past year and have a positive view of the future," says Håkan Svensson.



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