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Further investments in Domsjö

Dec 17 2010  Domsjö Fabriker has decided on further investments to increase specialty cellulose capacity to 255,000 tons per year. Domsjö is also looking into other opportunities, such as business acquisitions.

The Board of Directors of Domsjö Fabriker has decided on further investments in the biorefinery in Örnsköldsvik, northern Sweden, as part of the development program Domsjö 2012, which aims at increasing specialty cellulose capacity to 255,000 tons per year. ”It is important that we maintain our leading position and are able to grow with our customers. Therefore, we are developing the biorefinery in Örnsköldsvik while we at the same time are investigating other opportunities such as business acquisitions, says Ola Hildingsson,” CEO of Domsjö Fabriker.The investment decision means that an additional 280 million Kronor will be invested in Domsjö in 2011. It is part of the ongoing development program Domsjö 2012. Earlier this year Domsjö invested 300 million Kronor concerning a new lignin dryer and a new debarking facility.As a result of the development program, Domsjö’s cellulose capacity will increase from approximately 200,000 tons at present to 255,000 tons. This allows Domsjö to grow in the expanding textile market, according to Ola Hildingsson.Domsjö specialty cellulose is mainly used for viscose textiles. This is a market with strong growth.”Parallel to the development of the biorefinery in Örnsköldsvik, we are exploring opportunities to strengthen our position on the growing market for specialty cellulose. One option would be to convert an existing sulfate pulp mill in Scandinavia. However, this is complicated and expensive. Another option we are evaluating is to start producing specialty cellulose in South America. ?However, nothing is decided yet,” says Ola Hildingsson.

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