Södra Skog

Swedish HardwoodA successful business concept

Hardwoods are good Lithuania 18-19 October 2011

Södra Skog

SÖDRA

Forest owners economic association To provide service for the members To maximice the value of the forest owners wood Certified PEFC and FSC

Södra Skog

Our own industries are the base

5 pulpmills 3 in sweden 2 in norway 9 sawmills softwood 2 sawmills hardwood Sodra interior House elements Energy- electricity and heat 10 000 ha in Sweden 21000 ha Estonia 9000 ha Latvia

Södra Skog

We are working in Götaland

Main office Skogsudden Växjö 3 Regional offices 19 forest districts 3000 employes including industries Almost al cutting done by contractors

Södra Skog

Result 2010

Profit 2 027 miljons SEK Payback on invested capital 15% Payback on delivered wood 12%

Södra Skog

SÖDRA Forestowners economic association 51 000 memebers An averege of 50 hectars productive forest land 17% broadleaved trees 150 000m3/year as sawtimber the rest as pulpwood and

bioenergy Total use 2 500 000 m3 of wood

Södra Skog

A proud forest owner

Oak, Querkus robur 120 years old Value 800 euro High quality stem 9m

Södra Skog

Hardwoods, a complex structure

Many species 15-20 in the northern hemisphere More than 100 in the south The caracters vary a lot between different species Big variation in quality within the species/speciesgroup Geographically deverisfied High demands in handling and logistics A variable market with fashon trends Corect volym, demanded quality, just in time to a competitive

price Many owners, small stands Often very high biodiversty in mixed broadleaved forests

Södra Skog

We have simplified the demands

9 tree species can be delivered in one pile Smallest volume 5 m3 Easier quality demands length 2.6-3.2m diameter min

16 cm Sum of all branches=double topdiameter 50% of diameter can be red/brown center 50mm rot We sort out the logs species quality diameter length at

the sawmill

Södra Skog

Södra Skog

We work with many species

Oak, Querqus robur the most important economically Birch, Betula verucosa the biggest volume Beach Fagus silvatica, Alder Alnus glutinosa, Aspen

Populus tremula, Ash Fraxinus exelsior are also common Elm Ulmus glabra, Cherry Prunus avium and Maple Acer

platanoides are more rare and exclusive

Södra Skog

Hardwoods used for a variety of products High quality Desgin furniture and interior products Good quality furniture and massive flooring Medium quality Outdoor products Lower quality Parquett flooring and blindwood Bad quality glued fingerjoints

Boarders between different qualities vary with market

We have our own industries as a base

70 % of the oak is used in our own products, the rest within swedish floormaking.

30% of other treespecies are used in our own products. Remaining volumes exported to asia

Lower qualities used as emballage More and more volume exported as readycut pieces

branches and other low qualityparts to energy

Södra Skog

Sodra Interior-formed to get closer to the customer Sodra interior Grimslöv-panels and flooring Södra interior Växjö-glued fingerjoints and boards

Directly to the buildingmarkets in nordic countries and GB

Special products for asian market Sauna products

Södra Skog

Södra Skog

Södra Skog

SÖDRA a uniqe chain of custody

Södra ForestSödra Gapro DjursdalaSödra Gapro GrimslövCustomers and buildingmarkets

Certified according to PEFC and FSC

Södra Skog

General demands FSC and PEFC

A higher percentage broadleaved trees Restricted use of chemicals Restrictions using non native treespecies 5% of your area as protected forest Key habitats, old growth trees and dead wood

should be protected Areas with species on the national Red data

list

Södra Skog

Sustainable forestry

SÖDRA holds and pays for the certificate

The forest owner gets 20 SEK extra per m3 for double certificate

High production of usable wood, high biodiversity with preserved ecosystems

Bioenergy our third business area

Chipwood for heating and electricity

Firewood Pellets from sawdust

Woodchemistry on the move

First out celulosefiber of birch for fabric

Södra Skog

Södra Skog

Södra Skog

Working with broadleaves…..To be competitive you need Longterm investments Best technology and efficient logistics Defined qualities for different use High environmental responsibility Product development Marketing Design Export

Södra Skog

Södra Skog

For the Future

We need broad products with a big volume We need high quality products with a high value We need a good craftmanship We need to continously work with the relationship

betweenSawn timber pulpwood and bioenergy We need constant improvments finding the weak spots

Södra Skog

Södra Skog