Södra has officially launched construction of a groundbreaking kraft lignin facility at its Mönsterås site, marking a major step in the company’s ambition to lead the bioeconomy and boost value creation from forest resources.
Spanning 1,400 square meters, the new plant will be integrated into Södra’s existing pulp operations and is scheduled to be completed by 2027. Once operational, it will be the world’s largest kraft lignin production facility and the first commercial plant of its kind in Sweden.
Lignin, a natural polymer found in wood, is typically incinerated for energy in pulp mills. However, Södra’s new facility will extract, dry, and refine kraft lignin into a versatile raw material capable of replacing fossil-based ingredients in adhesives, composites, batteries, rubber, and even biofuels and biostimulants.
“This project represents a bold leap toward fossil-free materials and a more profitable, diversified forest industry,” said Johannes Bogren, President of Södra Bioproducts. “We are building a new business unit that not only strengthens our value chain, but also contributes to climate solutions.”
The plant is being developed with financial backing from Sweden’s Industrial Leap program, part of the EU Recovery and Resilience Facility (RRF), aimed at decarbonizing heavy industry.
The local impact will also be significant. The Mönsterås facility is expected to create approximately 25 new jobs, expand technical expertise, and elevate the region’s status as a hub for sustainable industrial innovation.
“This initiative puts Mönsterås on the map both nationally and internationally,” said Mill Manager Karin Dernegård. “We’re proud to be at the forefront of a transition that supports both the economy and the environment.”
With this investment, Södra is positioning itself not only as a pulp producer, but as a global leader in next-generation, forest-based bioproducts.
Södra is a leading Swedish forest industry group owned by over 50,000 forest owners. It produces high-quality wood products, pulp, and bio-based energy, with a strong focus on sustainability, innovation, and long-term partnerships in global markets.
