Southern forest owners want to get more out of each tree and, with a new billion investment, become the largest in the world in sulphate lignin. This was stated by CEO Lotta Lyrå in Almedalen on Tuesday.
Lignin is a part of the forest raw material that ensures the trees stand stably and holds together their fibres, and is currently mainly used to generate energy. However, Södra sees potential in the product, which can replace fossil materials in, for example, adhesives and batteries. Furthermore, sulphate lignin can form the basis for new biofuels.
The opportunities in sulphate lignin production can both contribute to the green transition and increase the profitability of forestry.
"This is a major investment for Södra and for the green transition," writes Södra's CEO Lotta Lyrå in a press release.
The billion investment is expected to be operational in 2027, and in Mönsterås, Sweden's first commercial factory will be established.
