Södra Begins Production Of Textile Pulp

Sweden-based Södra — an economic association whose members comprise more than 51,000 forest owners
in Sweden and which has production activities in the areas of wood products for construction and
interiors, wood pulp, and energy — has begun to produce hardwood-based textile pulp at its Södra
Cell Mörrum pulp mill, with expectations of producing 170,000 metric tons of textile pulp annually
once that operation reaches full capacity.

The company has been producing wood pulp for reinforcement and paper applications since the
late 1950s. In December 2010, it decided to invest in textile pulp production, and over the last
year has been implementing the investment and developing a marketing organization to serve the
textile segment. The textile pulp will be derived from hardwoods such as birch and aspen and will
be supplied to viscose fiber manufacturers.


Södra is producing textile pulp at its Södra Cell Mörrum pulp mill and plans to convert an
additional pulp line at one of its other mills from paper pulp to textile pulp production.

“We are focusing on textile pulp as this is a growing market to which we can supply a
certified, renewable forest raw material,” said Gunilla Saltin, president, Södra Cell.

The company also plans to expand production to an additional pulp line that is currently
producing paper pulp at one of its other mills.

February 7, 2012