Södra Cell Tofte to Continue Producing Pulp Until Aug 1, Sale Talks On-going

Sodra Cell Tofte has the capacity to produce 400,000 tonnes per year of chemical paper pulp.

May 22, 2013 - Despite an announcement by Södra in March that it had halted efforts to sell its Tofte pulp mill in Norway and would stop production at the mill on May 1, the company yesterday said “the process of finding a buyer for Södra Cell Tofte is on-going” and the mill will continue to produce pulp until August 1.

Additionally, in Södra's first quarter income statement on April 24, the company said, “Södra has been attempting for some time now to achieve profitability at Södra Cell Tofte, but it has not been possible to turn the tide despite a number of measures being implemented. This was why a process began in October 2012 with a view to finding a buyer for the mill. The original plan was to cease production at the mill during the second quarter of this year if no feasible buyer could be found. However, discussions concerning the sale are currently in progress.”

The mill in Tofte was purchased by Södra in 2000. The mill has the capacity to produce 400,000 tonnes per year of chemical paper pulp, and employs about 300 staff.

SOURCE: Södra