Södra has reached an agreement to divest its 25% ownership stake in Sunpine AB, concluding a partnership that began in 2008 to develop renewable products based on tall oil.
The transaction will be carried out alongside Sunpine’s other shareholders—Sveaskog AB and Lawter B.V., a subsidiary of Harima Chemicals Inc.—and is subject to customary regulatory and contractual approvals. Following an offer from a third party, VAROPreem exercised its right of first refusal and will acquire all outstanding shares in the company.
Södra said Sunpine is entering a new phase that requires a different ownership profile and expertise. The divestment allows the cooperative to refocus its resources on activities that deliver long-term value for its member forest owners.
“Sunpine is now entering a new phase where our assessment is that another owner can better support the company taking the next step,” said Lotta Lyrå, President and CEO of Södra. “Our objective of developing the tall oil market has been achieved, and this agreement allows us to concentrate our efforts where they create the greatest long-term benefit for our members’ forests.”
Södra emphasized that tall oil remains an important part of its product portfolio. The company will continue to focus on high-quality production and reliable delivery to customers, even as ownership of Sunpine changes.
The financial impact of the transaction will be reported in the first half of the year, once the deal has received all necessary approvals.
Founded in 1938, Södra is Sweden’s largest forest owner association, representing more than 50,000 family forest owners. The group operates an integrated industrial platform producing pulp, timber, building systems, energy, and biochemicals, with sales of SEK 28 billion in 2025.
Source: Södra
