Södra is launching a major initiative to develop family forestry. The company will invest in innovative companies that introduce new technologies for forest estates and enable a more multifaceted approach to family forestry. Södra will harness the opportunities created by technological advances and bring new know-how closer to forest estates. A new subsidiary, Södra Ädla, has been formed to strengthen these efforts – an investment partner focused on the future of family forestry.
Södra Ädla will invest in innovative companies whose business concepts provide direct support for the development and profitability of forest estates and enable a more multifaceted approach to family forestry.
“Development is part of family forestry’s DNA and forest estates have long been an innovation arena. With this initiative we are continuing to build on this history. By investing in innovative companies, we will attract new technologies to forest estates and create more business opportunities for Södra’s 52,000 members. With Södra Ädla, we will lead the development of small-scale forest ownership, provide opportunities for members to broaden their activities and strengthen the value of forest estates,” said Lotta Lyrå, President of Södra.
More investments in family forestry to come
Södra Ädla will invest SEK 200 million in a range of innovative companies that are facilitating or broadening forest ownership through new products and services. The areas of interest range from new products and services to digital solutions – provided they develop or facilitate small-scale forest ownership.
“Family forestry is diverse and new technologies have a huge potential to unleash new opportunities. We are looking into new biodiversity services, improved forest management methods and various financial services. We will spend a lot of time evaluating business models and the potential for impacting our members’ forest estates. We have an exciting time ahead of us,” said Erik Bengtson, Investment Manager for Södra Ädla.
Over the next few years, Södra Ädla is aiming to make 20 company investments and contribute to the commercial development of these companies. As an investor, Södra Ädla will play an active role and contribute expertise in family forest ownership that has been accumulated over many years.
“We want to be an active investor by contributing to the development of these companies through our connection with 52,000 family forest owners in Götaland, a world-class industrial structure and more than 80 years of experience in small-scale forest ownership,” said Bengtson.