Södra Cell will invest more than EUR 400 million to increase the production capacity of its Värö pulp mill in Sweden from 425,000 metric tpy to 700,000 metric tpy. As part of the project, Södra Cell has placed a major rebuild and new equipment order with Valmet Corp., Finland. The order is included in Valmet's second quarter 2014 orders received and is valued at around EUR 200 million.
Valmet's delivery will contribute to Södra's performance by significantly increasing the Värö mill's pulp production capacity and energy efficiency. The order consists of a new continuous cooking plant and upgrades of wood handling, fiberline, evaporation plant, recovery boiler, recausticizing, flash dryer, pulp dryer, and baling. On completion of the project, Värö will be one of the world's largest softwood sulfate pulp mills. Startup of the rebuilt pulp mill is scheduled for the third quarter of 2016.
"We have had good experiences with Valmet and feel confident that this project will be a success. We have worked closely together with Valmet in planning the project. This investment increases our pulp production, makes the mill more energy efficient, and increases its bioenergy supply potential," said Gunilla Saltin, CEO, Södra Cell.
The estimated employment impact of the order is about 650 man years, mainly in Sweden. A large part of the order will be delivered from Valmet's operations in Sweden: the cooking plant and recausticizing from Karlstad, fiberline, flash dryer, and baling from Sundsvall, and evaporation and recovery boiler from Gothenburg. The wood handling and pulp dryer delivery will come from Finland.
A prerequisite for construction start is the receipt of a permit from the Environmental Court of Appeal.
Södra is an economic association with a membership base of 51,000 forest owners in southern Sweden. Södra has built up considerable production capacity of paper pulp, wood products, and biofuels. The company employs about 3,800 people and has four business areas—Södra Skog, Södra Cell, Södra Timber, and Södra Interiör.
Södra Cell is one of the world's largest market pulp suppliers, with a total annual production of 1.6 million metric tons.
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