NEGOTIATIONS AT UTANSJÖ MILL ARE COMPLETED PRODUCTION TO STOP AT THE END OF MAY

The union negotiations initiated at the beginning of January when the Rottneros Group announced its intention to stop production at Utansjö Mill in the second quarter this year have been completed. Production of groundwood pulp will cease at the end of May and production of the CTMP grade of pulp will cease about one month earlier.

”The negotiations were carried out swiftly and in a constructive manner,” said Rottneros CEO Ole Terland. He also said that the cost of closing down Utansjö Mill will be kept within the SEK 90 million range as indicated in the 2007 Year-End Release published on 1 February.

More information: Ole Terland, +46 8 590 010 00

Rottneros is one of the world’s leading independent producers of market pulp. The Group consists of the parent company, Rottneros AB, which is listed on the OMX Nordic Exchange in Stockholm, along with its subsidiaries Rottneros Bruk AB, Rockhammars Bruk AB, Utansjö Bruk AB and Vallviks Bruk AB in Sweden as well as Rottneros Miranda, S.A. in Spain, with activities involving production and sales of market pulp; the Group also includes the raw materials purchasing companies Rottneros Baltic SIA in Latvia and Rottneros Madeira in Portugal, as well as the sales company Rottneros S.A. in Belgium. The Group has established a new business area, Rottneros Packaging, for production of pulp-based packaging materials for food use. With approximately 720 employees, the Group has a turnover of approximately SEK 2.9 billion.