Hafslund – Pellet production at Averøya to be closed down

Reference is made to the stock exchange notice dated 16 October 2012, and Hafslund’s third quarter 2012 report to shareholders regarding write-downs and assessment of continued operations of Hafslund’s wholly owned subsidiary BioWood Norway AS.

The Board of BioWood Norway AS has today approved the close down of the pellets production plant at Averøya, Norway. Overcapacity and low prices in the pellets market as well as technical challenges in the plant have made the production to run at a loss. The Board has considered different measures, but found no basis for long-term profitable operations. The production is expected to be terminated by the end of the year.

Hafslund ASA
Oslo, 21 November 2012

For further information:
Heidi Ulmo, CFO, tel.: +47 909 19 325, heidi.ulmo@hafslund.no
Johan Chr. Hovland, Senior vice president Corporate communications and public affairs, tel: +47 91763491, johan.hovland@hafslund.no