STORA coordinates purchase and sale of pulp

In order to fully utilize the Group's position as a seller and a purchaser of market pulp, a joint organization will be established, effective January 1, 1997, for the purchase and sale of pulp. This operation, which in organizational terms is based within Stora Cell, will be managed by Michael Palm. The Group's pulp purchases, which were formerly handled through Stora Purchasing and Transport, will be transferred to Stora Cell under the new organization. In all other respects, the operations of Stora Purchasing and Transport will remain unchanged. STORA's market pulp production capacity amounts to 1.4 million tonnes, of which approximately 1.1 million tonnes relates to paper pulp for the production of paper and board and 0.3 million tonnes to fluff pulp, which is used for the production of hygiene products. The Group's own units account for approximately 50 percent of production. The remainder is market pulp destined for external customers. Group sales and purchases of market pulp largely offset each other.