Demand for products from the Swedish forest is on the increase in China. In 2017, Södra increased sales of paper pulp by more than 50 percent. At the same time, Södra’s sales of sawn timber in the country have increased steadily since 2010.
Södra’s core markets for both paper pulp and sawn timber are located in Europe. However, China is currently one of the fastest expanding markets. In January–September this year, Södra’s sales of paper pulp increased by more than 50 percent to the country compared with the same period in 2016. Uses for paper pulp include cardboard packaging, and toilet and kitchen paper.
“Growth in China is robust. With the increased volumes provided by our investments we can tap into this growth. Demand for raw material from certified forest is on the increase with a clear focus on sustainability, and this is something we can contribute towards,” said Magnus Björkman, Vice President Marketing and Sales, Södra Cell International.
The market is showing no signs of slowing in the near future and there is also strong pressure for sawn timber to China. Södra began delivering sawn timber to the country in 2010 and sales have grown each year. Södra established a sales office for sawn timber in Shanghai in 2015. To meet rising demand in the region, an additional sales office was opened in Hong Kong on 1 October.
Starting in 2018, Södra’s position in China will be further strengthened when a new purchasing office is established in Shanghai, under the name of Södra International Trading. Focus will be on purchasing indirect materials, such as machinery and processing equipment.