Holmen Invests in Increased Paperboard and Pulp Production

Regulatory News:

Holmen: (STO:HOLMB)(STO:HOLMA)

The production capacity for paperboard at the UK mill in Workington will rise by 10 per cent or 20 000 tonnes through a rebuild of the paperboard machine’s press section. The rebuild, which is expected to be completed during the first half of 2016, will also bring improved product quality.

At Iggesund Mill, pulp capacity will rise by 15 per cent or 50 000 tonnes. The investment will be implemented in stages from 2015–2016. The measures will also improve production stability and cut variable costs.

"Recent years have seen us invest strongly in reducing our energy costs and our dependence on fossil fuels. Now we’re investing in increased production, while also cutting our variable costs, and thus strengthening our competitiveness,” explains Annica Bresky, CEO of Iggesund Paperboard.

"Our strategy is to grow organically and to make additional increases to our paperboard production. For the mill in Workington, this investment marks a first step in that direction. At Iggesund Mill, our ambition is to increase production by 10 per cent in coming years without any major investment.”

This is information that Holmen AB is obliged to disclose under the Swedish Securities Market Act and the Swedish Financial Instruments Trading Act. The information was submitted for publication on 10 December 2014 at 15.00 CET.

Holmen is a forest industry group that manufactures printing paper, paperboard and sawn timber and runs forestry and energy production operations. In 2013 Holmen’s net sales were approx. SEK 16 billion and the group has approx. 3,700 employees. Holmen’s shares are listed on Nasdaq Stockholm, Large Cap. For more information, visit www.holmen.com

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