Stockholm, Sweden 03 July 2013 -- Södra has decided to apply for an environmental licence to extend production at Södra Cell Värö. The intention is to increase production capacity from the current 425 000 tonnes of pulp per year to 700 000 tonnes.

"Södra Cell is currently a leading player in the field of market paper pulp production, and this is a position that we want to retain and develop. This is why we have decided to apply for an environmental licence to expand our pulp mill in Värö," says Lars Idermark, CEO and Group President of Södra.

"We are currently working on reviewing our group strategy, and we expect this work to be complete in early 2014. Expansion of Södra Cell Värö is one of the measures that can reinforce our position and create sustainable profitability. This expansion will result in more efficient production and also pave the way for a long-term, profitable market for our members' wood raw materials," continues Lars Idermark.

"Our pulp mill in Värö offers plenty of potential for expansion. The intention is to increase production capacity from the current 425 000 tonnes of pulp per year to 700 000 tonnes. This expansion will allow us to develop still further the range of high-quality softwood products that we offer to our customers. Our aim going forward remains to be the first choice for our customers. Värö currently supplies high-quality pulp to a number of different customer segments, and this is something that we want to develop and underpin," says Gunilla Saltin, CEO of Södra Cell.

"As well as increasing pulp production, this investment means that the plant can be made even more energy-efficient. Södra Cell Värö is already independent of fossil fuels during normal operation," adds Gunilla Saltin.

A final decision on the investment may be made once the licensing process has advanced far enough for what is known as an commencement permit to be issued.

Facts: Södra Cell Värö:

The plant in Värö opened in 1972. Its production capacity amounts to 425 000 tonnes of chemical paper pulp. The plant employs around 330 staff.