Valmet to supply a new wood chipping plant to Södra Cell Mörrum in Sweden

Valmet Corporation's press release on July 8, 2014 at 11:00 a.m. EET

Valmet will deliver a new wood chipping plant to Södra Cell's Mörrum pulp mill in Sweden. The delivery is part of Södra Cell's project to increase the pulp production at the Mörrum pulp mill. The order is included in Valmet's third quarter 2014 orders received and is valued at around EUR 20 million.

Valmet's delivery will consist of a complete woodroom including two wood debarking and chipping lines, bark handling and chip conveying systems. The start-up of the new wood chipping plant is scheduled for spring of 2016.

Valmet and Södra partner in both Mörrum and Värö upgrades

Södra Cell Mörrum pulp mill, photo Ola Åkeborn/Södra

Valmet's delivery is part of Södra Cell's about 70 million euro investment to increase the pulp production at Södra Cell Mörrum, where Södra currently operates two parallel pulp lines for the production of softwood pulp and textile pulp (dissolving pulp). The investment includes a new wood chipping plant and one of the mill's two pulp lines will be upgraded. The investment is expected to increase production from 380,000 to about 425,000 tons annually.

Already in June Valmet announced it will supply the major rebuild and new equipment to Södra Cell's Värö pulp mill, where Södra Cell in making an over 400 million euro investment to increase the Värö mill's pulp production capacity from 425,000 tons to 700,000 tons per year.

"We look forward to cooperating with Valmet in this project," says Gunilla Saltin, CEO, Södra Cell.

"Good cooperation with Södra Cell continues in the Mörrum pulp mill upgrade. Valmet is the world's leading supplier of woodhandling systems. The new wood chipping plant will be utilizing industry leading technology and includes Valmet's patented log feeding system GentleFeed," says Jyrki Holmala, President, Pulp and Energy Business Line, Valmet.

Valmet GentleFeed system in operation

About Södra Cell

Södra is an economic association with a membership base of 51,000 forest owners in southern Sweden. Södra has built up a considerable production of paper pulp, wood products and biofuels. Södra employs about 3,800 people and has four business areas Södra Skog, Södra Cell, Södra Timber and Södra Interiör.

Södra Cell is one of the largest players in the world in the area of softwood pulp and operates three pulp mills in Sweden: Mörrum, Mönsterås and Värö. Södra Cell Mörrum currently produces high-quality pulp and is the only Södra mill to produce textile pulp, for which demand is growing rapidly.

Corporate Communications

Further information, please contact:
Jyrki Holmala, President, Pulp and Energy, Valmet, tel. +358 10 676 3210
Hannu Tähkänen, VP Wood and pulp handling, Pulp and Energy, Valmet, tel. +358 10 672 9700

Valmet Corporation is a leading global developer and supplier of services and technologies for the pulp, paper and energy industries. Our 11,000 professionals around the world work close to our customers and are committed to moving our customers' performance forward - every day.

Valmet's services cover everything from maintenance outsourcing to mill and plant improvements and spare parts. Our strong technology offering includes entire pulp mills, tissue, board and paper production lines, as well as power plants for bio-energy production.

The company has over 200 years of industrial history and was reborn through the demerger of the pulp, paper and power businesses from Metso Group in December 2013. Valmet's net sales in 2013 were approximately EUR 2.6 billion. Valmet's objective is to become the global champion in serving its customers.

Valmet's head office is in Espoo, Finland and its shares are listed on the NASDAQ OMX Helsinki Ltd.

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