Lign Multiwood assumes strategy plan with long-term ambitions

Lign Multiwood assumes strategy plan with long-term ambitions Lign Multiwood's Board of Directors has assumed a strategy plan, which aims to achieve a delivery volume of 37,500 tons on an annual basis from autumn 2010. This corresponds to a sales value of approx. SEK 760 m. This strategy is based on two investigations, which were commissioned by Lign Multiwood and carried out by Timwood, one of the world's top consultancy companies for the wood mechanics industry. The strategy plan means that sales will be directed towards fewer market segments than previously - first and foremost, flooring and furniture, but also windows. Initially, market investments will be concentrated in the Nordic region and then later also turning towards North America and Japan. The aim to sell 13,000 tons, corresponding to SEK 250 m, annually is fixed for autumn 2004. Until then sales will be focussed on market segments regarding commercial flooring, furniture and windows in the Nordic region. "Timwood's studies show market potential for CaLignum products for the entire 49,000 tons in autumn 2004," says Curt Lindhe, CEO for Lign Multiwood. "That corresponds to a turnover of SEK 1 billion, which is four times higher than our ambition level of SEK 250 m for the same period. While we are a developing company entering a commercialising phase our goals will be somewhat conservative." Ambition 2004 Flooring Furniture Windows Nordic region 9 100 2 600 1 300 Ambition 2007 Flooring Furniture Windows Nordic region 14 100 3 900 2 000 North America 5 000 Total 19 100 3 900 2 000 Ambition 2010 Flooring Furniture Windows Nordic region 15 000 6 000 2 500 North America 10 000 1 500 Japan 2 500 Total 27 500 7 500 2 500 During 2005 we plan to work up the North American market starting with flooring and then later furniture. Our ambition is to sell 11,000 tons, corresponding to SEK 220 m, in North America in 2010. Lign Multiwood AB plans to utilise its experiences from North America when the company starts working up the Japanese market from 2008. Our ambition is to achieve a sale of 2,500 tons in Japan, which corresponds to a sales value of SEK 50 m. Ambition level CaLignum sales 2001-2010, amount 1000 tons In order to achieve our ambition the organisation needs strengthening in the upcoming years. Lign Multiwood is planing an increase in the number of co-operators from the present 16, to 36 in 2004. It is in the areas of marketing and technology where the need is greatest. Specialists within technology services, production adjustment, impregnation and surface treatment will be needed. New recruitment per 2000 2001 2002 2003 2004 annum and total Situat New New New New employees at the year- ion recruitm recruit recruit recruit end ent ment ment ment Economy 2 +1 Technology, 9 +5 +4 +1 +1 development, production Market 2 +2 +1 +1 +4 Management 1 +1 +1 Total number of 14 22 29 31 36 employees Those investigations ordered by the Board of Directors on Lign Multiwood's market potential were delivered during 2000 in two parts. The first part was made public in connection with the Annual General Meeting of Shareholders 2000. The potential was studied in the large markets in Europe, a total of seven countries, within the product segments of flooring, stairs, windows and furniture. Timwood's other study covered Europe, North America and Japan since these three regions are the largest wood product consumers in the world. The study, which was aimed at improving knowledge in these markets and at improving precision within Lign Multiwood's marketing, were delivered to the Board of Directors in December 2000. During winter and spring 2001 the Board analysed the results of the study and their effects on the company. The analyses resulted in the aforementioned strategy plan. "We know the world is changing," says Curt Lindhe. "Therefore, our plan will be updated constantly in accordance with Timwood's future analyses and with changes in the world around." For more information contact: Curt Lindhe, CEO Lign Multiwood, Tel no. 0708-845 606 ------------------------------------------------------------ This information was brought to you by BIT http://www.bit.se The following files are available for download: http://www.bit.se/bitonline/2001/05/22/20010522BIT00200/bit0002.doc http://www.bit.se/bitonline/2001/05/22/20010522BIT00200/bit0002.pdf