Sodra Seeks Divestment of Tofte Pulp Mill in Norway

Sodra Cell's Tofte mill in Norway has an annual production capacity of 400,000 tonnes of chemical paper pulp.

Feb. 19, 2013 - Sodra announced that it will divest its Tofte chemical pulp mill in Norway.

"This decision has been made as a result of longstanding difficulties with unsatisfactory profitability at the mill," Sodra said in a written statement.

"A process has begun to sell the mill," Sodra added, and, "Sodra Cell's management has been given the task of creating a divestment plan for Södra's ownership of the mill."

Gunilla Saltin, Acting CEO of Sodra and President of Sodra Cell, said, "We have been attempting for some time now to make Sodra Cell Tofte profitable. The commitment and expertise of the staff have kept quality and productivity at a high level, and they have fought valiantly to keep production costs low. Despite everything we've done, we are now forced to conclude that we have failed to reverse the trend."

Sodra's goal is to end its involvement in the mill during the second quarter of this year.

Sodra Cell Tofte, in Tofte, Norway, was purchased by Sodra in 2000. Its timber consumption is approximately 2 million m3 per year. Production capacity amounts to 400,000 tonnes per year of chemical paper pulp. The mill employs 300 people.

SOURCE: Sodra