ROTTNEROS TO BUILD CTMP-PLANT AT UTANSJÖ MAGNEFITE PRODUCTION TO BE DISCONTINUED

Utansjö Mill, belonging to the Rottneros Group, will realize the investment of a production plant for the pulp quality CTMP (chemo-thermo-mechanical pulp). The investment will amount to approximately 280 MSEK. The production capacity will be in the range of 100 000 tonnes pulp per year meaning that the total capacity, including the existing stone groundwood production will amount to 180 000 tonnes.

The new plant, producing pulp from both aspen and spruce, is planned to start production at the turn of the month March/April 2005. The investment plans for the new CTMP production line were announced in April this year. Already today Rottneros is among the world’s largest producers of CTMP.

- The investment is part of the heavy and extensive profitability programme started in the beginning of 2003 for the Utansjö Mill, as is the shutting-down of the unprofitable production of magnefite pulp,. The new plant will be built adjacent to the existing mill. It will be extremely cost efficient by using large parts of already existing process equipment and infra structure, says CEO Lars Blecko. He also points out that there has been a considerable increase in demand for aspen CTMP during the last few years.

By realizing this investment the cost reduction and profitability programme for the Utansjö Mill is finalized. Negotiations regarding the downsizing of approximately 20 positions have been started.

The production of stone groundwood pulp will not be influenced by the changeover from magnefite to CTMP production. Deliveries of magnifite pulp will continue from stock during 2005.

Upplands Väsby, 16 September 2004

ROTTNEROS AB (Publ.)

For further information call CEO Lars Blecko, tel. +46 8 59 00 10 10

The Rottneros Group, listed on the Stockholm Stock Exchange, is one of the world’s leading non-integrated producers of market pulp. The Group includes the parent company Rottneros AB, five pulp mills in Sweden and Spain, a small sawmill as well as raw materials purchasing companies in Latvia and Portugal. The Group also has marketing companies in Germany and Belgium. Production capacity amounts to 700,000 tonnes. The Group has around 860 employees and turnover of approximately SEK 2,400 million.