MoDo To develop product quality and increase degree of processing

MoDo To develop product quality and increase degree of processing MoDo's Board of Directors decided at its meeting on Wednesday, December 9 to invest in the upgrading of one of the board machines at Iggesund Paperboard's mill in Workington, England. The investment project will raise the quality of the paperboard products and raise the mill's delivery capacity of these products. The project, which is budgeted to cost SKr 675 million, will also include upgrading Workington's pulp procurement system. Some other investment decisions were made, mainly relating to replacement investments. MoDo's capital expenditure is estimated at some SKr 1,600 million for the current financial year, and at approximately SKr 2,500 million for 1999. The figure for 1999 includes already decided capital expenditure of some SKr 1,000 million. Application for changed permits, Hallsta Paper Mill An application will be submitted this month (December) to the National Franchise Board for Environmental Protection to change the conditions in the permits for Hallsta Paper Mill. The main reason for the application is that Hallsta will be able to strengthen its position as a paper mill producing special wood-containing printing paper, mainly in the segment for improved newsprint (MF Journal), which is used in newspaper supplements, free newspapers, house magazines, and for direct mailing. The changes covered by the application are intended to increase degree of processing, and raise the mill's delivery capacity of products of this type. An application to make greater use of recycled fibre is included. Repurchase of Holmen Kraft MoDo has decided to exercise an option to repurchase shares in Holmen Kraft AB, a partnership-financing company that owns hydro-electric power stations, on December 30, 1998. The exercise price of the option will amount to some SKr 935 million. The hydro-electric power assets concerned have an annual capacity corresponding to some 350 GWh at power stations on the River Fax and on Motala Ström in Norrköping. The business will be conducted at an unchanged level within MoDo Kraft, which is a member of the Holmen Paper business area. If you have any questions, please contact Mr Bengt Pettersson, President and CEO, today between 16.00 hrs and 17.00 hrs. Tel +46 8 666 21 00. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/12/09/19981209BIT00430/bit0001.doc