KLIPPAN restructuring Caldwells Mill and selling business to Curtis Fine Papers

KLIPPAN restructuring Caldwells Mill and selling business to Curtis Fine Papers Following the acquisition at the end of last year of the Caldwells Mill, Inverkeithing in Scotland, KLIPPAN has decided on the future strategy of that unit. The mill will concentrate all production to the paper machine PM 5, which along with associated plant will be upgraded leading to the development of sustainable business. Production at the smaller PM 3 will discontinue in July 2003. As a result of this the mill will increase operations from the current five and a half days per week to a continuous seven days production which will facilitate the transfer of many affected employees. As a part of the changes planned, KLIPPAN International PLC has reached an agreement that Curtis Fine Papers Ltd will acquire the business of water marked and security papers currently produced in Caldwells Mill. Curtis already has a number of customers in common with Caldwells Mill. The transaction includes trademarks, such as Avalon, and know-how related to water marked and security papers. KLIPPAN and Curtis will work closely together with customers during the coming months to ensure a smooth transition. The parties have agreed not to disclose the price. CEO of KLIPPAN AB, Bengt Östensson comments on the changes: "We have carefully judged the future strategy of the Caldwells Mill and concluded that we will concentrate our efforts in developing the bigger of the two paper machines in the mill, PM 5. We will develop Caldwells into an efficient producer of speciality and high quality graphic papers for printing and publishing as well as for office use. Curtis has specialised in the security and water marked papers sector and we see a better strategic fit for Curtis which will allow further development of this business." KLIPPAN AB Bengt Östensson President/CEO For further information please contact: KLIPPAN: Bengt Östensson, CEO of KLIPPAN AB at +46 (0)435 29101, mobile +46 (0)70 595 86 27 or Paul Hirst, General Manager Caldwells Mill, at +44 (0)1383 41 31 31, mobile +44 (0)7909 52 89 39. CURTIS Janey Hunter, Sales and Marketing Director at +44 (0)1334 83 95 51, e-mail: Janey_Hunter@curtisfinepapers.com KLIPPAN AB is a leading producer of speciality graphic papers and operates four paper mills with a combined capacity of 240,000 tons per annum. The mills are located in Klippan, Lessebo and Mölndal, all in the south of Sweden and in Inverkeithing in Scotland. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2003/04/08/20030408BIT00360/wkr0001.doc http://www.waymaker.net/bitonline/2003/04/08/20030408BIT00360/wkr0002.pdf