Scancem forms fuels company

Scancem forms fuels company Four of Scancem's business areas together form Scancem Energy and Recovery Ltd. (SEAR). It will become the Group's specialized fuels and residues company. SEAR will give priority to a reduced utilization of limited fossil resources - mainly fuels - and instead offer alternative fuels derived from wastes. "The ambition is to increase the use of alternative fuels from the current level of 70,000 tons per year to more than 700,000 tons within a period of five years", comments Håkan Fernvik, SEAR:s elected chairman of the board. "This will lead to important financial savings and will also have a considerable positive impact on the environment." In recent years many tests have been made at Scancem's cement and lightweight aggregate plants both in the Nordic countries and the United Kingdom with various supplementary fuels, and the results of these trials have been very good. The alternative fuels are derived from oils and solvents, as well as from rubbers, plastics, textiles, papers and wood. These activities are now coordinated with the coal trading which has been conducted for many years within Scancem International, both to Group companies and external clients. These operations have created considerable economies of scale with a positive effect on the Group's earnings. SEAR starts operations on September 1. The business areas Cement Nordic and Castle Cement will each own 30 percent of the shares while the remaining 40 percent will be distributed between the business areas Scancem International and Optiroc Group. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1998/08/13/19980813BIT00070/980813e.pdf http://www.bit.se/bitonline/1998/08/13/19980813BIT00070/980813e.doc