Swedish Södra closes pulp mill

The Södra, Sweden producing short-fiber pulp and softwood, plans to terminate the activities of its factory in Tofte, Norway, from May 1, which must withdraw from the market 400 thousand tons per year of raw material. The Södra Cell Tofte is one of the largest units of Chemical pulp of Norway, with 70% of production exported.
In a statement, the company informed that has sought to make the operation profitable alternatives in Tofte, but that "could not turn the game". "That was the reason we started in October to search for a buyer," he said.
As the Södra, efforts to sell the factory were abandoned due to receipt of value offers "very low". This decision will be taken to the Board of Directors and, if no solution is found within a month, the company plans to shut down the production starting in May.
According to Gunilla Saltin, Södra, Chief Executive works for sale from Tofte stretched for six months and "several" potential buyers were contacted. "However, we are forced to conclude that we have a limited number of offers and the level [of them] was too low to carry the process forward," he said in a statement.
The Södra went public in February, the intention to liquidate the holding company Södra Cell Tofte and sell the unit. His decision to leave the market a significant volume of pulp and will match the second relevant industry closure in the year. Since mid-January, the Brazilian Jari, of Grupo Orsa, ended the production of short-fiber pulp in Pará, reducing the global supply in 410 thousand tons per year.
These movements contribute to greater balance between supply and demand and have compensated for the time being, the additional volumes arising from the start-up of the first factory of Eldorado Brazil pulp, in Três Lagoas (MS). The unit, which began its activities in November, has a capacity of 1.5 million tons of the fiber.