HIGH DEMAND FOR ASPEN PULP BEHIND PLANNED MAJOR REBUILDING AT UTANSJÖ

The project comes as a result of the programme of measures for Utansjö Mill adopted in December last year. In addition to measures aimed at cutting costs, the programme included investments in improved product quality and adaptation of the product range to the market.

High utilisation of raw materials

Rottneros currently has the capacity to produce 135,000 tonnes of CTMP per year, making the Group one of the world’s biggest producers of this type of pulp. The planned facility will have a production capacity of over 100,000 tonnes per year and could start production in early 2005. The new production is environmentally efficient as well as cost-effective, in part because around 90% of the raw material is utilised in the finished product.

“Since we plan to build the new facility next to our current mill, we can utilise the existing process equipment and infrastructure. This is a major factor in the investment being cost-effective,” says Rottneros’ CEO Lars Blecko.

“The project is of major significance for the future of Utansjö. We are therefore hoping that it will be dealt with quickly by the authorities concerned.”

Meeting market requirements

“Using aspen as our raw material allows us to produce a very bright pulp, which will satisfy market requirements. Demand for aspen CTMP has increased substantially in recent years,” states Lars Blecko. The new facility will also produce CTMP from spruce.

At present Utansjö Mill produces magnefite pulp and groundwood pulp. If the planned CTMP facility is built production of magnefite pulp will cease, while groundwood pulp – mainly from spruce – will continue to be produced.

Upplands Väsby, Sweden, 29 August 2003

Further information: Lars Blecko, President and CEO, +46 (0)612-716200 or +46 (0)70-641 4910

Rottneros is one of the world’s leading independent manufacturers of market pulp. The Group consists of the parent company, Rottneros AB, which is listed on the Stockholm Stock Exchange, along with its subsidiaries of Rottneros Rockhammar AB, Utansjö Bruk AB and Vallviks Bruk in Sweden as well as Rottneros Miranda, S.A. in Spain, with activities involving production and sales of market pulp, Rockhammar Timber AB, which produces and sells sawn timber, plus the raw materials purchasing company of Rottneros Baltic SIA in Latvia. The Group has a total of 864 employees and a turnover of approximately SEK 2.5 billion.