Södra's Tofte Mill to Close
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Södra, Sweden, this week reported that it has not been possible to reach a sales solution for its mill in Tofte, Sweden, despite much effort, and that the company has now decided to close the mill. Production at Tofte will cease in August. A total of 280 staff members at the mill will be affected.
"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," says Gunilla Saltin, president of Södra Cell.
Södra's decision is based on long-term difficulties with achieving profitability at the Tofte mill. The company said that 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.
The mill at Tofte was purchased by Södra in 2000. Its production capacity totals 400,000 metric tpy of chemical paper pulp.
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