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2005-12-07

Holmen's Board decided on Wednesday to invest MSEK 415 (MEUR 44) at Iggesunds Bruk in Sweden. The investment is mainly intended to improve the quality and quality consistency of the products from the mill's KM 2 paperboard machine.

"It is very important for Iggesund Paperboard to consolidate its position as a world leading producer of high-quality paperboard," says Magnus Hall, Holmen's President and CEO.

In the middle of the 1990s, KM 2 was extensively rebuilt to enable production of on both sides double-coated paperboard.

"The rebuilding project that is now approved will put us in a position to further develop the mill's products for the most demanding applications in graphic production and packaging. For example, a new wire section will ensure we remain in the forefront in quality for a long time to come," explains Iggesund Paperboard's President, Björn Kvick.

Iggesunds Bruk is a mill within Iggesund Paperboard, Holmen's paperboard business area. The mill has the capacity to produce 300,000 tonnes of solid bleached board per year. It has around 800 employees.

For further information please contact:

Magnus Hall, President and CEO: +46 8 666 21 00
Björn Kvick, President, Iggesund Paperboard: +46 650 280 00.



The Holmen Group

Holmen is a forest industry group that manufactures printing paper, paperboard and sawn timber and runs forestry and energy production operations. The company’s extensive forest holdings and its high proportion of energy production are strategically important resources for its future growth.

Holmen AB

Tel: 08-666 21 00

E-post: info@holmen.com

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