Södra Unable to Sell Tofte Pulp Mill in Norway, Plant to Close

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

July 2, 2013 - Södra Cell said that despite efforts to sell its Tofte pulp mill in Norway, the company has been unable to do so and therefore has now decided to close the plant.

Production will cease in August.

A total of some 280 members of staff at the mill will be affected by the decision.

"We have spent more than six months trying to sell the Tofte mill at commercial terms. We have been in touch with a large number of stakeholders during this time. Despite our efforts, however, we are unfortunately forced to conclude that it has not been possible to reach a sales solution," said Gunilla Saltin, President of Södra Cell.

In a statement, Södra Cell said, "This decision is based on long-term difficulties with achieving profitability at the plant. It has not been possible to turn the tide despite extensive measures being implemented. A process began in late 2012 with a view to finding a buyer. However, the discussions held have proven fruitless, hence the reason for this decision."

SOURCE: Södra Cell