HÖGANÄS CONSOLIDATES ITS OPERATIONS IN BRAZIL

Höganäs Brasil Ltda will consolidate all activities to the site in Mogi das Cruzes, São Paulo during 2008 to improve efficiency and to reduce cost and capital employed.

Höganäs has sold the facility in Jacarei, São Paulo and will concentrate all activity in Brazil to the facility in Mogi das Cruzes. Manufacturing, technical support centre and sales offices will be moved by October 2008. The total investment will amount to 30 MSEK and the annual savings will be in excess of 5 MSEK per year in reduced costs and improved process efficiency. There is no profit from the sale of the site in Jacarei but it will finance the total investment.

In May 2007, Höganäs announced an expansion in melting capacity in Mogi das Cruzes in response to the rapid growth in the region.


Enquiries:
HÖGANÄS AB (publ)
Alrik Danielson
President & Chief Executive Officer
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Höganäs AB (publ)
Corporate Communications

Höganäs, Sweden, 5 February 2008