Sodra Halts Efforts to Sell Tofte Pulp Mill in Norway

March, 20, 2013 - Sodra said that has halted its efforts to sell its Sodra Cell Tofte pulp mill in Norway due to lower than expected offers for the mill.

The mill has the capacity to produce 400,000 tonnes per year of chemical paper pulp and employs about 300 people.

Sodra said that if it can not find a solution to the siutation within the month-long qualifying period, it will stop production on May 1.

"We have been working to find a buyer for the Tofte mill for almost six months now and we have been in contact with a large number of potential buyers over that time," said Gunilla Saltin, Acting CEO of Sodra and President of Sodra Cell. "However, we are forced to conclude that we have received a limited number of bids, and that the levels of the bids made are too low to make it worthwhile continuing with the sale."

Sodra noted that despite efforts to achieve profitability at Sodra Cell Tofte, "it has not been possible to turn the tide."

Sodra began the process to find a buyer in October 2012, and then in February of this year announced its intention to liquidate its holding in Sodra Cell Tofte and that a sale process had begun.

In a statement the company said: "Contact has been made with a large number of potential buyers all over the world. However, the bids received have been deemed to be too low and so the sale process has been terminated. This decision means that production at the mill is planned to cease at the 1 of May.

The mill in Tofte was purchased by Sodra in 2000.

SOURCE: Sodra