Södra's operating profit for the first four months of the year totalled SEK 334 million (941). Sales amounted to SEK 6,239 million (6,243) and the operating margin was 5 percent (15). "During the first four-month period, the forest economy was slightly weaker year-on-year, particularly in the sawn timber market. While sales and production volumes remained stable, exchange rates and price trends - which contributed to Södra's historically high operating profit in 2015 - were less favourable. 2016 is a year of transition for Södra, since the effects of the investment programme at the Värö pulp mill will not be fully realised until 2017," said Lars Idermark, President and CEO.The Group's operating profit totalled SEK 334 million (941). The decline was mainly due to a weaker price and currency trend. The preceding year's result included a nonrecurring item of SEK 133 million related to divestment of the shares in Södra Cell Tofte AS.
In keeping with its commitment to the environment and increased energy efficiency, Lecta has announced an innovative renewable energy project to harness solar radiation for thermal power to be used in manufacturing processes at its Condat Le Lardin-Saint-Lazare mill.
With the help of an expert specialized in the installation of thermal power plants for the paper industry, starting this fall Lecta will have a thermal solar power plant at the mill with a capacity of 3.4 MWth. Its total surface area will be 1.4 hectares, with 45,434 square feet of solar panels deployed on the surrounding land and an ability to provide around 3,900 MW/year of energy. Panels with solar trackers, mechanical devices that orient the collectors, will follow the position of the sun during the day and convert the sun’s rays into thermal energy that will be sent to the mill as hot water.
Given the environmental benefits, including reduced gas consumption and CO2 emissions, as well as increasing the value of undeveloped land, job creation and, most importantly, promoting renewable energy in the New Aquitaine region with what will be the largest thermal solar power plant in France, the project has received the support of ADEME (French Agency for the Environment and Energy Management), which is financing 65% of the costs.
After the completion of the initial phase, which included its presentation to the local administration and securing the required licenses, the land is now being prepared for construction within the expected timeframe, with completion initially anticipated for September of this year.
With this project at its French mill, Lecta consolidates its position as an environmentally responsible company committed to solar energy as a sustainable, renewable resource, supporting its innovative use in manufacturing processes.