Tuesday, June 10, 2025
On May 28, a ceremony in Mönsterås marked the official start of construction for Södra’s new kraft lignin plant. This facility is a key milestone in Södra’s strategy to maximise the value from every tree and expand its business through innovative bio-based products. The plant will play a vital role in supporting the green transition while boosting the local labor 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, a natural substance found in trees, serves as a binding agent between fibers. During pulp production, lignin is released and is currently primarily used for energy generation. With the new plant, Södra will have the capability to separate and dry kraft lignin, opening up opportunities to replace fossil-based materials in applications such as adhesives, batteries, rubber, and composites. Additionally, the kraft lignin can be utilised as a key building block for innovative biofuels and biostimulants.
The establishment of the new plant in Mönsterås will not only create new job opportunities but also bring enhanced industrial expertise to the area. It will further boost Mönsterås’ appeal as a leading sustainable industrial hub.
“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.
About Södra
Södra serves as the bridge between forest estates and consumers, where they are always striving to maximise the value of forests and the customer benefits they create.
That is how members and employees refine and renew family forestry together, over and over again. Via their financial model, the Södra Model, every estate shares the added value they create in Södra, and their cooperative form of ownership ensures a unique commitment and long-term approach. Södra’s business model is unique and the starting point for their strategy.
They call their Group-wide strategy ʻFrom one family to another.ʼ The name comes from Södraʼs role as the bridge between family forestry and families in the community. The raw material is delivered from membersʼ forests, which have often been in the family for generations, and converted into essential and sustainable products via their mills. The products fill important functions in everyday family life – from the coffee filter in the morning, to climate-smart buildings with timber frames.
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