Wargön Mill

New organisation
will lead to 50 job cuts

An action programme has been approved for Wargön Mill, a coated printing
paper mill within Holmen Paper.

The programme includes the introduction of a new organisation, which
will lead to some 50 job cuts - in addition to the 25 announced in
connection with the closure of
the mill's sulphite pulp mill this autumn. The Wargön mill, which is
located in Vargön, (in the municipality of Vänersborg) some 70
kilometres north of Gothenburg, currently has 375 employees.

The action programme is drawn up in response to the unsatisfactory
return by the mill for some time and the considerable excess capacity
and depressed prices on the market for coated printing paper.

Apart from personnel cuts, the plan includes measures to improve the
quality of the paper. The Wargön mill has the capacity to produce
130,000 tonnes of paper a year.

Negotiations on the new organisation are now in progress.

For further information, please contact Magnus Hall, President of Holmen
Paper (+46 11 23 50 00), or Rikard Wallin,
Manager at Wargön Mill (+44 521 27 75 00).