all of södra’s operations are based on the forest and … · the expansion means that värö...

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2016-05-02 2 All of Södra’s operations are based on the forest and the ever- growing forest raw material

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2016-05-02 2

All of Södra’s operations are based on the forest and the ever-growing forest raw material

Södra’s business is built on value-generating relationships and a long-term approach.

12 March 2015 3

2016-05-02 4

Södra Cell

• One of the world’s largest manufacturers of softwood pulp

• Three pulp mills, at Värö, Mörrum and Mönsterås

• 90% of the production is softwood pulp, the remainder is hardwood pulp

• Dissolving pulp is made at Mörrum

• Major supplier of biofuel, green electricity and district heating.

Södra Cell

02/05/2016 5

Södra Cell – strategic focus

• Profitable organic growth, based on the Swedish raw material and traditional pulp products

• Structure adapted for large volumes

• Continuous improvements, a quality focus and the development of working methods

02/05/2016 6

Södra is investing for the future

Mörrum SEK 1,700 million

Mönsterås SEK 400 million

Värö SEK 4,000 million

02/05/2016 7

02/05/2016 8

Södra Cell Värö Start-up year 1972

Employees 330

Capacity 425,000 tonnes/year 700,000 tonnes/year from 2016

Production today: 425 000 tonnes/year

Future production: 700 000 tonnes/year

Why this investment?

• Growing market for softwood pulp

• Continue to grow together with our customers

• Create value of our owners forest

• Increased competitiveness

2016-05-02 9

Expansion Project Södra Cell Värö

The expansion means that Värö mill will be one of the biggest producers of softwood market pulp in the world

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0 100 200 300 400 500 600 700 800 900 1 000

- Brunswick,GA, United States

- Perdue Hill,AL (Alabama River Mill), United States

- Mönsterås (Södra Cell Mönsterås), Sweden

- Castlegar,BC, Canada

- Mininco (Pacifico Mill), Chile

- Väröbacka (Södra Cell Värö), Sweden

- Plymouth,NC, United States

- St. Felicien,QC, Canada

- Kamloops,BC, Canada

- Terrace Bay,ON, Canada

- Nanaimo,BC (Harmac Pacific), Canada

- Prince George,BC (Intercontinental Pulp Mill),…

- Pöls, Austria

- Pictou, Abercrombie Point,NS, Canada

- Skookumchuck,BC, Canada

- Riegelwood,NC, United States

- Husum, Sweden

- Catawba,SC, United States

- Perry, Foley,FL, United States

- Saint-Gaudens,HG, France

- Panama City,FL, United States

- Peace River,AB, Canada

- Steti, Czech Republic

- Grums (Gruvön Mill), Sweden

- Espanola,ON, Canada

- Demopolis,AL, United States

- Iwanuma,MI (Iwanuma Mill), Japan

- Gävle (Korsnäsverken), Sweden

- Imatra (Kaukopää Mill), Finland

- Varkaus, Finland

- Kure,HA, Japan

- Kuusankoski (Kymi Mill), Finland

- Iggesund, Sweden

- Svetogorsk,LEN, Russia

Ton massa

2016-05-02

Construction commencement

April – June

Time Schedule

2016-05-02

2013

Environmental

application to the

Environmental Court

14 February

Board decision

24 February

Building permit

June/July

Start-up permit

September

Plant shutdown

5 weeks

May-June

Start-up, Environmental

Court decision 1 July

Pre-project commencement

1 September

2014

Procurement

Main machinery equipment

Construction contract

2015 2016

Connections, April stop Machine assembly

commences

11

2016-05-02

250 250 250 250 275 300 160

206 240 317 325 410

525

78

276

505

970 1069

1139

1572

257

450

450

450 450

500

550

450

300

0

500

1000

1500

2000

2500

3000

3500

Dec Jan Feb Mar Apr Maj Juni

NCC expansion

Södra expansion

Valmet expansion

Södra-anställda och ordinarie konsulter

Ordinarie stopp

1182

1445

1987 2094

2324

3247

945

We estimate that more than 3000 people will be at the site during the shutdown!

2016-05-02 13

Expansion Project The whole mill is rebuilt:

-Wood handling

-Cooking plant

-Fiber line

-Drying machine

-Evaporation plant

-Recovery boiler

-Turbine

-Recausticizing

-Cooling towers

-Water treatment

-Waste water treatment

-Chlorine dioxide plant

-Common systems

2016-05-02

Flisfabrik – befintlig linje Running and building at the same time

Photos from one sub project

2016-05-02 16

Digester parts on the way Digester parts on the way

2016-05-02 17

Chip conveyor to digester plant

Södra Cell Värö

Kokeri - bygget Digester mounting

2016-05-02

New Digester

2016-05-02 20

Södra Cell Mörrum Start-up year 1962

Employees 335

Capacity*

• dissolving pulp 145,000 tonnes/year

• paper pulp 280,000 tonnes/year

02/05/2016 21

*in 2016

Södra Cell Mörrum 2020 – A specialty mill producing 500 000 tons

Södra Cell Mörrum’s strategy for 2020

• A total production of 500 000 tons

• Producing 200 000 ton high quality DWP

• Producing 300 000 ton high quality NBSK

• Introduction of a new Bio-product

2016-05-02 22

“Capacity and Quality” – the first step in our development towards 2020

5/2/2016 23

New wood yard

Brown stock wash

• 30 000 ton NBSK

• 15 000 ton DWP

• Improved pulp quality

• Improved working environment

• Reduced impact on the

environment

• Reduced production cost

A new wood yard gives Södra Cell Mörrum us the right condition for capacity and quality…

5/2/2016 24

• Two lines for flexibility

• Separate system for bark

handling

• Better work environmental

• Better environmental

performance

2016-05-02 25

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2016-05-02 28

Conversion of the paper pulp line increase capacity and gives lower impact on the environment…

5/2/2016 29

• Increased capacity

• Reduced consumption

• Better work environmental

• Better environmental

performance

2016-05-02 30

“Capacity and Energy” – the second step in our development towards 2020

5/2/2016 31

Our aim is:

A new evaporation plan

Rebuilt brown stock wash

L1, DWP

”More energy deliveries”

300 000 ton NBSK

170 000 ton DWP

Schematic layout evaporation

2016-05-02 32

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