The digitisation of the value chain is key to the future family forestry and value generation.
We are also seeing a huge interest in Södra’s CLT outside Sweden.
There is an underlying demand for forest-based products in the ongoing climate transition, which means that long-term outlooks are considered favourable.
By joining forces with Lenzing, we now taking the next step on our journey and will bring world-class recycling to the textile value chain.
Södra wants to show the way to a fossil-free society and contribute to the transition together with our customers.
We will now be focused on what we can influence by improving conditions for family forestry and processing forest raw materials into climate-smart products and solutions.
Increasing timber-frame construction is a key aspect of the climate transition and there are multiple advantages with CLT.
The low climate impact of our CLT is confirmation of our strong and dedicated sustainability efforts across the value chain. The difference is due to our fossil-free nurseries, sustainably managed forests, biofuel transportation and fossil-free sawmills and production facilities.
We are dedicated to finding more sustainable solutions for everyday life and delighted that the potential of the forest is really coming into its own now.
New opportunities to use biomethanol, tall oil and turpentine are constantly emerging. And we are investing in research and development to do everything we can to take advantage of the emerging opportunities.
OnceMore® has the potential to shake up the fashion industry and will enable large volumes of used cotton and cotton-polyester blends to be turned into new clothing and textiles. We are delighted with the progress achieved so far.
The global economy is projected to contract this year due to COVID-19, despite a slight and recent recovery. A more stable and sustainable turnaround in the years ahead will require an easing of the uncertainty created by the pandemic. In view of the current market conditions and geopolitical uncertainty, Södra’s operating profit to date this year can be considered stable.
Södra’s investment is entirely in line with the European Green Deal as set out by the European Commission, which has the aim of dramatically reducing our carbon footprint and reducing emissions. By manufacturing the world’s first fossil-free biomethanol, we are demonstrating how engineering prowess and innovation can contribute to the transition of society. We are pleased that the importance of this kind of investment is understood by politicians.
The investment is part of Södra’s new Group strategy and means that we can continue to follow our chosen path and grow together with our customers. Increasing production will strengthen our competitiveness and our position in the global market as a long-term and secure partner.
Investing in research is crucial to facilitating the transition of society, regardless of whether we are in a boom or a slump, or in a period of pandemic and uncertainty in the market. It is on the basis of this insight that we have decided to contribute additional funds.
It is with pride that we have now started up the first commercial plant in the world for biomethanol. With this step, we are showing the way to a fossil-free society, and it is fully in line with our own strategy for fossil-free transportation by 2030.
A large CLT facility and Sweden’s largest sawmill in the same geographic location will present excellent opportunities to leverage synergies at Värö that will strengthen our customer offering.
We are now redrawing the map for the fashion and textile industry by offering circular flows of textile fibres. A sweater can now become a sweater again. This will create added value for our customers, and especially the fashion industry. It’s a big day for us and an equally big day for the emerging circular bioeconomy.
Södra works actively, where possible, to concentrate nature conservation considerations to specific sites, and this has generated results. By concentrating nature conservation considerations, we can maximise both nature conservation benefits and the production potential. Many species benefit more when trees are left in groups rather than spreading them out across a harvesting area.
The 2018 result is the best in Södra’s history. We were able to meet the strong demand for our products due to extensive investments of approximately SEK 11 billion in our pulp mills and sawmills, and new innovations over the past four years. We also completed efficiency improvements and restructured our operations. Södra has thus strengthened its competitiveness.
Society’s expectations of how this renewable raw material from the forest can help to combat climate change is clear. We are therefore investing to create opportunities for increasing forest production using low-impact methods in family forestry.
Such a high level of demand is a positive trend. Control-pollinated seeds will produce higher quality trees and improve tree growth. This will increase the returns that forest owners receive from harvesting, and improve the quality of the end-products.
Forests can play a key role in the transition to fossil-free air transport. Together with our partners, we now have the expertise required to move forward. Combined with financial support from the Swedish Energy Agency, Sweden can lead the development of new technologies to solve a major challenge
In the third quarter, profit was very satisfactory, especially in light of the challenges for timber sourcing and production caused by the summer’s extreme weather conditions.
Due to several years of successful efficiency improvements, our fossil-free production target will soon be achieved by all of our production units. It is very gratifying that our nurseries have already reached this goal.
The journey of change undertaken by Södra’s sawmills in recent years is now yielding results in terms of more competitive production and a better offering to our customers.
I am proud of what we have done at Långasjö. With this investment of SEK 100 million, we have created an efficient and modern sawmill where we can produce even higher volumes at a lower cost and meet the demand for our sustainable products. The investment makes the facility well-equipped for the future and strengthens our market position.
There are several reasons for this robust earnings trend. The favourable global economy has contributed to high demand and a positive price trend for Södra’s products in both market pulp and the sawn timber area. We are also seeing the positive effects of our comprehensive expansion investments in the pulp mills, and the efficiencies and restructuring we have achieved in sawn timber production.
It is a great honour to receive this award and it is an accolade to all of our fantastic coworkers at Södra. Committed employees are, and will always be, what drive our company forwards. At Södra, it is not only the forest that must grow. We are a company that shows the way and where we grow together as we move into the future. There is still work to be done, but the award is confirmation that we are on the right track.
This is very gratifying, both for Södra and society as a whole. It confirms that the transition to fossil-fuel independence is not only possible, but that Södra is also able to lead the way in this area
Forest growth is continuously increasing and we have twice as much forest now compared with 100 years ago, a trend that we want to continue. One of Södra’s sustainability targets is a 20-percent higher rate of forest growth on our members’ estates by 2050. Because they lead to better yields, our cultivars are important for achieving that target.
Despite the difficult conditions created by a very wet autumn and winter, we could effectively limit the negative impacts of our harvesting and thinning on soil and water. The positive results are due to our systematic nature conservation activities over the past 20 years, and good teamwork and coordination between our competent contractors and field workers.
These two factors combined indicate a highly positive trend. Södra has been working systematically to improve nature conservation in forestry since the 1990s with the aim of strengthening biodiversity. The growing number of birds in forests is due to several underlying factors – ongoing climate change is believed to be one, but we are also seeing how a greater focus on nature conservation has promoted forest bird populations.
We are delighted to have set a record for the third consecutive year. Our focus on more digitised production is starting to yield results in the form of higher volumes, and improved seedlings with more even quality.
Timber is a fantastic material to build with and we are seeing a growing interest globally to build in a more environmentally sustainable manner using wood.
The hardwoods have regenerated almost 100 percent naturally and in the most recent inventory, they accounted for about 25 percent of the dominant tree species compared with 18 percent in 2000. The reason for this increase has not been studied in any detail, but it’s probably due to a more positive view of hardwood trees among forest owners.
This is a milestone decision. The forest offers enormous potential when it comes to finding new and sustainable solutions for products that were previously confined to fossil raw material. Södra has expert knowledge in forests and industrial processes to extract high-quality products from forest raw material, while Statkraft is specialised in energy. This is a strong combination.
By being open to new methods, we can also continually adapt our way of working. In this way, we are making an even greater contribution to our owners and their forests, as well as to society as a whole, which benefits from well-managed forests
We are very pleased with this substantial increase. It shows how we can use innovation and investments in green industry to meet important societal needs
Growth in China is robust. With the increased volumes provided by our investments we can tap into this growth. Demand for raw material from certified forest is on the increase with a clear focus on sustainability, and this is something we can contribute towards.
More and more people are realising why we need to switch to fossil-free alternatives, but products must also move forward. We have access to the best and most renewable raw material available – forests. We also have the industrial expertise required for these types of complex and innovative Products.
This is a very positive trend that we can also see on a global scale. Timber construction is by far the most environmentally friendly alternative and a condition for the global change to a more sustainable society.
Both producers and consumers are demanding sustainable alternatives to packaging made from fossil-based materials like plastic. This is where the forest and the forest industry have a lot to offer. We have a fantastic, renewable commodity and we have the knowledge and experience to develop new solutions that are required for a climate-smart future. DuraPulp is a 100-percent sustainable alternative that is well-suited for packaging intended for sensitive substances such as food.
While forests are playing an increasingly significant role in the bio-based community, the conditions for forestry are changing. We have made a lot of progress with forestry in southern Sweden, but we want more. There is more to do in terms of both production rates and diversity. This research will contribute. It will create even more opportunities for a stable and forest-based future.
We want more people to discover the joy and opportunities presented by the forest. Grow Forest is a way to welcome the next generation of forest owners and employees. Public awareness of forestry and forest products is relatively low and through this game, we hope to arouse curiosity and create new insights.
We see a broad social trend. Wood is becoming increasingly popular as a building material for both private construction and multi-unit solutions. There is a growing awareness that wood is by far the most climate-smart alternative for construction.
The forest contains solutions to many current and future challenges. We would like more people to learn more about this – and perhaps also make a contribution.
The increased digitisation of the nursery, including more computer-controlled platforms, will be highly significant for raising the quality and quantity of production. The nursery’s resources can be used more effectively, which will help us improve our contribution to ensuring new forests in Sweden.
Fossil-free and climate-positive operations are high on Södra’s agenda. It is only natural, therefore, that we sign up for the challenge from Fossil Free Sweden and we hope that many others will do the same.
We are happy about the County Administrative Board’s decision. The use of drones makes field work in forests safer, more time-efficient and comprehensive. It’s a good example of a new solution in the move towards digital forestry.