End of Södra Cell Tofte
Stockholm, Sweden 20 March 2013 -- Södra is now ceasing efforts to sell Södra Cell Tofte due to the fact that the bids received are too low. This decision will now be reported to the county. If no solution is found during the month-long qualifying period, the company plans to stop production at the 1 of May.
"We have been working to find a buyer for the Tofte mill for almost six months now, and we have been in contact with a large number of potential buyers over that time. However, we are forced to conclude that we have received a limited number of bids, and that the levels of the bids made are too low to make it worthwhile continuing with the sale," said Gunilla Saltin, Acting CEO of Södra and President of Södra Cell.
Södra has been attempting for some time now to achieve profitability at Södra Cell Tofte, but it has not been possible to turn the tide despite a number of measures being implemented. This was why a process began in October 2012 with a view to finding a buyer.
In February this year, Södra announced its intention to liquidate its holding in Södra Cell Tofte and that a sale process had begun. Contact has been made with a large number of potential buyers all over the world. However, the bids received have been deemed to be too low and so the sale process has been terminated. This decision means that production at the mill is planned to cease at the 1 of May.
Facts: Södra Cell Tofte
The mill in Tofte was purchased by Södra in 2000. Its production capacity amounts to 400,000 tonnes of chemical paper pulp. The mill employs about 300 staff.