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VIDA Paper to Increase Production at Lessebo Mill
Lessebo, Sweden, 09 June 2011 -- VIDA AB is announcing a further investment in new developed pulp production at its Lessebo paper mill. The first step in the project will increase, through new investment, the invoiced volume from 52,000 metric tons of paper to 70,000 metric tons of pulp and paper.
 The initial phase of the cellulose pulp production project will temporarily reduce the volume of finished paper manufactured at the mill and some less profitable volume in production will be sacrificed to that end. However, none of the mill's valued primary contracts with our major customers and merchant groups will be effected by this temporary reduction. 

Dissolving pulp is a specialty pulp with a concentrated cellulose content. VIDA Paper’s pulp is based on 100% spruce wood chips. Dissolving pulp is used in textile, cellophane, and hygiene product manufacture. The new dissolving pulp will be in production early in Autumn 2011 and comprise a volume of 28,000 metric tons per annum.

"Resultant from this project, we now have the ability to further improve the quality of our premium papers with a full focus on the optimal pulp mixture and particularly so when taken with the additional investment in a new quality control system being installed on PM3," said Henrik Thuresson, mill sales and marketing director. "We are very optimistic that these developments will further consolidate us as 'the' premium uncoated paper supplier in Europe."

"The future of papermaking for small mills in an industry of multinational giants depends upon listening to our customers and the markets and then through investment, innovation and flexibility meeting the demands of both. Diversification into cellulose dissolving pulp production is a clear and practical application of this theory and our company is prepared to invest," said Santhe Dahl, VIDA AB's majority shareholder.

VIDA Paper AB's CEO Jan Fjeldsa notes that, "Economy of scale together with the decision to depend on three trategic business areas; premium paper, dissolving pulp, and energy production will add further stability to the future at Lessebo."


VIDA Paper currently manufactures 30,000 metric tons per year (for own paper production) of sulfite pulp and 52,000 metric tons per year of white and cream-shade premium uncoated, colored uncoated woodfree, and woodfree digital papers.

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