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Negotiated New Structure at Hallsta to Procede
Norrköping, Sweden, 25 June 2008 -- The previously announced structural change at Hallsta paper mill has been the subject of negotiations pursuant to the Co-Determination at Work Act. These negotiations have now been completed and the change will be carried out as planned. Thus, Holmen will go ahead with its intention of ceasing paper production on PM 2 and of closing down the recovered paper line, effective 01 November 2008.

The structural change means that production of standard newsprint at Hallsta will be reduced, and that PM 2’s production of mainly book paper will be transferred to a larger machine. Together with other changes in the product mix in the business area, the restructuring will help to reduce Holmen Paper’s total production of standard newsprint by 150,000 metric tons per year.

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