Södra to divest Folla pulp mill
The Folla mill produces CTMP. Södra Cell is planning to leave the CTMP market from 1 November this year.“We’ve been struggling to create profitability in CTMP for several years. In spite of all the measures we’ve taken, we’ve found it increasingly difficult to find a profitable market for what we produce,” explained Gunilla Saltin, President of Södra Cell.Södra has used considerable resources to reverse the negative trend, including energy efficiency improvements, product development and cutting the workforce.“We’ve been trying for a long time to find a solution to make operating the mill profitable but we now have to accept that previous conditions for profitable CTMP production at Follafoss no longer exist. We deeply regret that this is the case,” said Saltin.“The flexibility and creativity of Folla’s employees have kept quality and productivity at a high level and they’ve fought valiantly to keep production costs low,” she added. The Folla mill produced 83,500 tons of pulp in 2011. Average annual production has been 107,000 tons.There are currently 51 employees at the mill. If it will be closed down, a career transition process will be initiated that will include all employees.