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Södra parts with Folla mill to exit CTMP market

Södra Cell Folla CTMP mill in Norway.
Source: Södra, Photo: Ola Åkeborn
29 Aug 2012 − 

Södra Cell has decided to divest the unprofitable Folla CTMP mill in Norway. The management of the mill is already working on viable options.

Södra is planning to exit the market for chemi-thermomechanical pulp (CTMP) as of 1 November 2012 and is looking for ways to divest the Södra Cell Folla pulp mill in Norway. According to Södra, management of Södra Cell Folla has already been entrusted with developing a divestment plan for the mill.

Södra attributes its decision to unsatisfactory cost-position of the pulp mill. The company has been struggling for several years to make CTMP production at Folla mill profitable, Södra's CEO Gunilla Saltin explained. Despite all the efforts and investments in the mill, conditions for profitable production at Follafoss no longer existed, she added.

Södra Cell Folla has an installed capacity of more than 100,000 tpy of CTMP and is supplying customers in different market segments, including paperboard and tissue manufacturers. In 201, the Folla mill produced 83,500 t. 51 people are currently employed at the Folla mill. If the company decided to close the mill, a career transition process for all employees would be initiated, Södra said.

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