Södra to Sell Södra Cell Tofte Mill
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Södra, Sweden, has decided to divest its Tofte chemical pulp mill in Norway. The decision was made because of longstanding difficulties with unsatisfactory profitability at the mill, the company noted. Södra Cell's management has been given the task of creating a divestment plan for Södra's ownership of the mill, and the process to sell it has begun. Södra plans to end its involvement with the mill during the second quarter of this year.
"We have been attempting for some time now to make Södra 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," said Gunilla Saltin, acting CEO of Södra and president of Södra Cell.
The mill in Tofte was purchased by Södra in 2000. Its timber consumption is approximately 2 million cubic meters per year. Production capacity totals 400,000 metric tpy of chemical paper pulp. The mill employs 300 people.
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