In Sweden, the forest owners association Södra has announced an organizational shuffle in its business organization. Renewable energy and biochemicals play a key role in Södra’s strategy and are anticipated to grow and further contribute to a fossil-free future. As a result, the Södra Bioproducts product area is now being formed to further strengthen the customer offering through a more coherent business structure and sales.
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According to a statement, Södra’s future product portfolio consists of five main businesses – sawn timber, pulp, building systems, carbon, and renewable energy and biochemicals.
The energy and biochemicals business will continue to grow and provide additional support for Södra, where the whole tree is processed for tomorrow’s green economy.
To develop and optimize the existing business, the Södra Bioproducts product area is now being formed to gather the customer offering in energy and chemicals.
Johannes Bogren, currently Vice President of Södra Cell Bioproducts, will become the new VP of Marketing & Sales at Södra Bioproducts.
By taking an overall approach to our entire energy and chemicals business, we will be able to offer our customers a broader portfolio of products, better service, and a developed customer offering. We also want to play a clear role in the transition to a fossil-free future, and there is a major need for green products. This will make Södra an even more attractive partner, said Johannes Bogren.
A key area for strategic development
Södra Bioproducts will be responsible for developing and optimizing the existing business, which includes electricity, district heating, dissolving pulp, solid fuel products, and liquid products such as biomethanol, tall oil, and turpentine.
The responsibility for production will remain with Södra’s various business areas.
Energy and chemicals currently account for 7 percent of income and are seen as key areas in which Södra will continue to grow.
By developing the energy and chemicals business, Södra is strengthening the profitability of forest estates in both the short and long term.
It is also a way to step up measures to address climate change, for both the association and its customers.
Through better coordination, data-driven decision-making, and a leading customer offering for our existing products, we will be able to make considerable progress. We are also planning to develop new businesses over time, such as lignin and investments for large-scale biorefinery operations. This is an important part of our strategy and our mission, said Malin Nordin, Director of Strategy at Södra.
Effective as of March 13, 2023, the new Södra Bioproducts product area includes products such as dissolving pulp, tall oil, turpentine, biomethanol, electricity, district heating, pellets, briquettes, cutter shavings, bark, sawdust, dry chips, forest residue chips, and fuel wood.
