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2002-01-07

Iggesund Timber, Holmen's business area for the production and sale of
sawn timber, has entered into negotiation under the terms of the
Codetermination Act on a significant reduction in its work force.

Around 45 employees will be affected by the planned cut, which is mainly
due to the heavy losses incurred by the business area and the
deteriorating conditions on the market for the Swedish sawn timber
industry.

The planned cut is part of an action programme designed to reduce costs
and improve productivity at Iggesund Timber.

Holmen will examine what steps can be taken to minimise the consequences
of the redundancies.

Iggesund Timber currently has approximately 140 employees.

For further information, please contact Johan Hedin, President of
Iggesund Timber. Telephone: +46 650 280 15, mobile phone +46 70 211 08
56.



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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