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Rottneros Mill Temporarily Limits Production

Stockholm, Sweden, 10 December 2010 -- As of 10 December, the chemithermomechanical pulp line at Rottneros mill has been at a standstill for around 10 days, which corresponds to a loss of production of approximately 2500 metric tons. The stoppage is due to a combination of extremely high electricity prices and high timber costs, resulting in sales of marginal volumes being unprofitable. The strong Swedish kronor also contributes to reducing export margins. The production volume for the remaining part of December depends on how these factors develop.

The production line for groundwood pulp at Rottneros mill has not been affected by the stoppage. The Group's other manufacturing unit, Vallvik mill, which produces chemical pulp, is not as sensitive to electricity prices and is being run at full capacity.

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