Loss in first quarter for Södra
“We started the year with most of our sawmills implementing market stoppages, while production at two of our Norwegian pulp mills was down for much of the quarter. Production at our pulp mills was just 73 per cent of our normal capacity. For the sawmills, the corresponding figure was a low 70 per cent,” said Leif Brodén, CEO of Södra.The pulp market started to show signs of recovery during the first quarter of 2012. The world market price of bleached softwood sulphate pulp went up as inventories decreased.“We are seeing a recovering pulp market and anticipating economic recovery,” said Brodén. Price announcements have been accepted, and as of 1 April the price of NSBK is USD 870 per tonne. We are now seeing strong increases in volumes to China, which up to now has been more or less solely responsible for the increase," Brodén said.Pulp production at Södra’s five mills over the period amounted to 380,000 tonnes, compared with 522,000 tonnes over the same period last year. This reduction is due to the market stoppages which took place at Södra Cell Tofte and Södra Cell Folla.Textile pulp is now being produced at Södra Cell Mörrum. Annual production is expected to reach 170,000 tonnes, which will give Södra a competitive textile pulp product based on hardwood.“For the rest of 2012, we will see normal capacity utilization, and we think we will see a profit for the year which is just below last year’s result, along with a seven to eight percent return on capital employed,” said Leif Brodén.