Holmen Paper is opening union negotiations to reduce the workforce at Braviken Paper Mill, outside Norrköping. The reasons for the cutbacks are continued poor profitability and increasing competition.

Employees were informed on Wednesday about the coming job cuts, which will affect around 80 people.

"Holmen Paper's profitability is already low and we are continuing to experience tough market conditions," explains Henrik Sjölund, head of Holmen Paper. "We are therefore stepping up work on cutting our fixed costs. Unfortunately this will mean losing some employees."

In addition to job cuts at Braviken Paper Mill, Holmen Paper is also overhauling its central functions such as marketing and sales. Alongside this, the company is switching to more refined products.

"Holmen Paper is in the middle of restructuring the Swedish units so that they produce more refined and thus more profitable products, and that strategy will remain in place," states Henrik Sjölund. "We are exploiting the competitive advantages that our access to virgin fibre brings and increasingly becoming a specialist paper company."

For further information, please contact:
Jonas Lindell, public communications manager Holmen Paper, tel. +46 70 - 323 20 13
Ingela Carlsson, public relations director Holmen, tel. +46 70 - 212 97 12

In its capacity as issuer, Holmen AB is releasing the information in this press release in accordance with Chapter 17 of the Swedish Securities Market Act (2007:528).
The information was distributed to the media for publication at 11.00 CET on Wednesday 16 November 2011.