UPM has become one of the first buyers of sulfate lignin following Södra's significant investment in sulfate lignin production at its Mönsterås facility, which was announced earlier this year. The factory, expected to be operational by 2027, will be the first commercial sulfate lignin plant in Sweden and the largest of its kind globally.
UPM, with 15 years of expertise in lignin technology, has developed a strong patent portfolio and is positioned to use the lignin purchased from Södra to produce sustainable products across multiple sectors. This includes resins for the plywood and MDF industries as well as binders for insulation materials. Lignin's renewable nature, lower carbon footprint, and biodegradability make it highly attractive to customers seeking sustainable materials.
Södra, leveraging its access to forest raw materials and scalable production capabilities, plans to produce up to 250,000 tons of sulfate lignin annually across its three pulp mills. Södra’s head of bioproducts, Johannes Bogren, emphasizes the company’s role in providing renewable alternatives to fossil-based materials, marking a key step in the green transition.
