Södra has reached an agreement to sell its stake in Sunpine AB to VAROPreem. Founded in 2006 in Piteå, Sunpine is a producer of crude diesel made from tall oil, an advanced biofuel produced from waste from the paper industry.
The transaction is being carried out jointly with co-owners Sveaskog AB and Lawter B.V.
Södra had been a co-owner of Sunpine since 2008 with a 25% stake, with the aim of "promoting the development and commercialization of renewable tall oil-based products."
According to Södra, Sunpine is now entering a new "phase requiring a change in ownership and expertise," which explains its decision to sell its stake to a company capable of continuing its development.
“Sunpine is entering a new phase where, according to our analysis, another owner is better positioned to take the next step. Our goal of boosting the development and commercialization of tall oil has been achieved, and this decision and agreement allow Södra to focus its resources where the impact is most significant for the long-term value of the forest heritage,” says Lotta Lyrå, President and CEO of Södra.
Following a third-party offer, VAROPreem exercised its right of first refusal and will acquire all of the company’s outstanding shares.
Södra’s tall oil business remains an important part of its product portfolio, with a focus on high-quality production and delivery to its customers.
