SWEDEN â€“ SĂ¶dra's Board announced this week that it has decided to invest approximately SEK 700 million to increase pulp production at SĂ¶dra Cell MĂ¶rrum. A new wood-chip plant will be constructed and one of the mill's two pulp lines will be upgraded.
In February of this year, SĂ¶dra's Board decided to invest just over SEK 4 billion to increase capacity at the VĂ¤rĂ¶ pulp mill. Investments are now also being made in the MĂ¶rrum pulp mill, where SĂ¶dra currently operates two parallel pulp lines for the production of softwood pulp and textile pulp (dissolving pulp).
"This is another investment that strengthens our market position and competitiveness for market pulp. The expansion of pulp production is a key part of our Group strategy and a crucial feature of our efforts to develop our operation," said Lars Idermark, CEO of SĂ¶dra.
The existing facility at MĂ¶rrum currently produces a total of 380,000 metric tons annually. The investment is expected to increase production to about 425,000 metric tons per year.
"The investment will enable us to meet the growing demands of our customers for softwood pulp and the increasingly popular textile pulp. It will enhance our energy efficiency, result in even higher quality pulp and improve the work environment," commented Gunilla Saltin, President of the SĂ¶dra Cell business area.
The project includes a new wood-chip plant with two separate wood lines, one for softwood-chip and one for hardwood-chip production, in addition to a refit of the softwood line, where the existing washing equipment will be replaced.
The first phase of the project is scheduled to be carried out in 2014-15 with completion expected March 2016.
SĂ¶dra Cell MĂ¶rrum currently produces high-quality pulp and is the only SĂ¶dra mill to produce textile pulp, for which demand is growing rapidly. SĂ¶dra Cell is one of the largest players in the world in the area of softwood pulp and operates three pulp mills in Sweden: MĂ¶rrum, MĂ¶nsterĂĄs and VĂ¤rĂ¶.