Södra starts up textile pulp production at its Cell Mörrum mill in Sweden; annual production expected at 170,000 tonnes

VAXJO, Sweden, Jan. 26, 2012 (Press Release) - Production of textile pulp at Södra Cell Mörrum has now begun. Under full operation, annual production is expected to amount to 170,000 tonnes, and the investment in Mörrum will give Södra competitive textile pulp production based on hardwood.

Södra made a decision to invest in the production of textile pulp back in December 2010. The Group is anticipating strong market development for textile pulp as it is renewable and timber-based, and it will replace oil-based and cotton fibres. Since this decision was made, implementation of the investment and development of a new market organisation for the new customer segment have been taking place in parallel.

"We are focusing on textile pulp as this is a growing market to which we can supply a certified, renewable forest raw material," said Gunilla Saltin, president of Södra Cell.

"For Södra Cell Mörrum, this is an important step in the reinforcement of the profitability and competitiveness of the mill," said Magnus Olsson, Site Manager for Södra Cell Mörrum.

Södra's executive committee has also made a decision in principle about an appropriation limit for production of textile pulp on a further pulp line at one of the company's pulp mills. A definitive decision on a second textile pulp line at Södra will be made in 2012.