Thursday, February 19, 2026
Södra has reached an agreement to divest its 25% ownership stake in Sunpine AB to VAROPreem, alongside shareholders Sveaskog AB and Lawter B.V., a subsidiary of Harima Chemicals Inc.. The transaction, which is still subject to the necessary approvals, marks a significant shift in Södra’s strategy as it focuses on new priorities and moves forward with its core business.
Södra has been a partner in Sunpine since 2008, with the aim of developing renewable products based on tall oil, a key component of its strategy to maximize the value of every tree. This strategy has allowed Södra to improve the profitability of its member forests by enhancing the market for tall oil products. However, as Sunpine enters a new phase of development, Södra believes that a different type of ownership is required to take the company forward.
The decision to divest its stake in Sunpine was driven by the company’s successful achievement of its original goal: to drive the development and market of tall oil. As Lotta Lyrå, President and CEO of Södra, explained, “Sunpine is now entering a new phase where our business assessment is that another owner can better support the company taking the next step. Our purpose of driving the development and market for tall oil has been accomplished, so for Södra, this decision and the agreement is about focusing our resources where they add most long-term value to our member’s forests.”
Following an offer from a third party, VAROPreem exercised its right of first refusal and will acquire all outstanding shares in Sunpine. The transaction is currently undergoing approval processes and is expected to be completed after receiving the necessary regulatory clearances. Once finalised, the deal will be reflected in Södra’s financial results for the first half of the year.
The divestment of Södra’s shares in Sunpine comes at a time when the company is refocusing its efforts to enhance the long-term sustainability and profitability of its operations. Södra’s tall oil business remains an integral part of its product portfolio, with a continued emphasis on producing high-quality products and meeting customer demands.
Despite the divestment, Södra’s tall oil business continues to be a key area of focus. The company has made significant strides in producing and delivering high-quality tall oil products to customers worldwide. This business is vital to the overall sustainability strategy, and Södra remains committed to maintaining a leading role in the sector.
As Södra moves forward, it will focus its resources on areas that create the most long-term value for its members’ forests. This realignment is part of the company’s broader goal to maintain financial stability and ensure the sustainable growth of its forest-related businesses.
The divestment signals a shift in the timber industry as companies like Södra look for ways to adapt to changing market conditions. The decision to exit Sunpine reflects the increasing need for specialised ownership and expertise as certain businesses enter new stages of development. Södra’s divestment underscores the importance of strategic focus and the need to align resources with evolving business goals.
The timber industry is also facing challenges with raw material availability and production cost pressures. Companies must be agile and responsive to such pressures, and Södra’s move highlights the importance of adapting strategies to ensure long-term viability in the marketplace. The divestment of shares in Sunpine allows Södra to concentrate its efforts on areas where it can have the most significant impact, particularly in the realm of forest management and the development of sustainable products.
Södra’s decision to divest its shares in Sunpine marks a new chapter for the company. By focusing on its core areas of strength, particularly in the development of high-quality tall oil products and forest management, Södra is positioning itself for continued growth and long-term sustainability. With VAROPreem set to acquire all shares in Sunpine, the transaction is expected to streamline operations and bring fresh expertise to the company. As Södra refocuses its efforts, its commitment to its members’ forests and to the broader timber industry remains at the heart of its strategy.
Read more news on Södra
Get more updates on American woodworking industry through: www.woodandpanel.us
Tags: financial results, forest management, renewable products, Södra, Sunpine, sustainable forestry, Timber Industry, VAROPreem, woodworking and processing, woodworking industry, woodworking UK
Comments: