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Holmen Invests in Hallsta Paper Mill

Stockholm, Sweden 07 February 2013 -- Holmen Paper is investing SEK 200 million in restructuring the energy supply at Hallsta Paper Mill. This is the single largest investment in the mill since the PM 11 paper machine was built in 2002.

The planned measures strengthen the mill’s competitiveness and form part of the transition to a two-machine mill.

“We’re providing Hallsta Paper Mill with completely new opportunities for the future,” says Henrik Sjölund, head of Holmen Paper. “By improving heat recovery from paper machines and pulp manufacture, we’ll be able to run the mill in a more energy-efficient manner.”

The restructuring also involves closing the two old solid fuel boilers, which will be possible when, as previously announced, the PM 3 paper machine is closed during the second half of 2013. The investment package also includes more modern and efficient monitoring of the process.

“These investments will make Hallsta Paper Mill a modern mill with two paper machines that occupy leading positions in their niches: magazine and book paper. The mill will also be a significant supplier of biofuel as we will have a surplus of bark that was previously burned in the solid fuel boilers,” says Henrik Sjölund.

The investment will have been made in full by summer 2014.

In its capacity as issuer, Holmen AB is releasing the information in this press release in accordance with Chapter 17 of the Swedish Securities Market Act (2007:528). The information was distributed to the media for publication at 12.40 CET on Thursday 7 February 2013.

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