On Wednesday, 28 May, a ceremony was held in Mönsterås to mark the start of construction of Södra's new kraft lignin plant. The facility is an important step in Södra's strategy to make more from every tree and develop its business by adding new bio-based products. The plant will support the green transition and strengthen the local labour market.

The new plant will cover an area of 1,400 m² and be built on a prepared site at Södra's existing combined facility in Mönsterås. The facility is scheduled for completion in 2027 and will then be the first commercial plant of its kind in Sweden and the world's largest producer of kraft lignin.

Magnus Hall, Chair of Södra, Lotta Lyrå, CEO of Södra, Allan Widman, County Governor in Kalmar Municipality, Clara Helstad from the Swedish Energy Agency, Karin Dernegård, Mill Manager of Södra Cell Mönsterås and Johannes Bogren, Business Area President of Södra Bioproducts took part in the ceremony to mark the start of construction.

"The construction start symbolises a huge step forward, driven by innovation and long-term investments. With this new plant, we are creating a completely new business operation at Södra that will support the green transition, increase profitability and strengthen the value of forest estates," said Johannes Bogren, Business Area President of Södra Bioproducts.

Investment in both the environment and the local community

Lignin is a natural substance found in trees and acts as a binding agent between the fibres. Lignin is released during pulp production and is currently used mainly for energy generation. With this new plant, Södra will be able to separate and dry kraft lignin, making it possible to replace fossil materials in, for example, adhesives, batteries, rubber and composites. The kraft lignin can also be used as the building block for new biofuels and biostimulants.

For Mönsterås, the establishment will not only add new jobs but also greater industrial expertise, as well as enhancing its attractiveness as a sustainable industrial site.

"We estimate that the new plant could create 25 new jobs. Being home to a world-leading kraft lignin plant puts Mönsterås on the map both nationally and internationally," said Karin Dernegård, Mill Manager for Södra Cell Mönsterås.

The plant is being constructed with support from the Swedish Energy Agency's Industrial Leap (Sw. Industriklivet), a government programme that supports technology investments aimed at reducing the climate impact of industry. The Industrial Leap is part of the EU's Recovery and Resilience Facility (RRF), which is the centrepiece of the NextGenerationEU package.