Karlshamns invests SEK 60 million to improve competitiveness

During its meeting today, Karlshamns’ Board of Directors decided to invest approximately SEK 60 million in streamlining measures with limited payback periods – measures which will thus generate full profit effects by 2006. These cost reductions are part of a far-reaching efficiency improvement programme, the overall goal of which is to increase the Group’s profits by SEK 100 million from the year 2006 onwards. The programme was introduced in connection with the release of the company’s interim report in October this year. Energy improvements An investment worth SEK 33 million is made to convert current fuel boilers to the use of wooden pellets. This investment will improve fuel flexibility, while also considerably reducing energy costs in comparison with the fuel varieties used today. Process improvements Karlshamns’ subsidiary Tefac, part of business area Technical Products, will invest SEK 25 million in a new pre-treatment process for raw materials. As a result, production capacity for high value-added speciality products will increase at the same time as the consumption of additives and energy will decrease. - These proactive investments, all of which are part of our SEK 100 million programme, will make us substantially better equipped to handle the exceptional upsurge in competitiveness throughout our industry, says Karlshamns’ President and C.E.O. Jerker Hartwall. For further information, contact Gunnar Bystedt, Global Production Manager, Supply Chain, telephone +46 454 821 45, mobile +46 708 675 145, or C.I.O. Bo Svensson, telephone +46 454 821 93, mobile +46 708 182 193.