AssiDomän develops its corrugated operations in Spain
AssiDomän develops its corrugated operations in Spain AssiDomän has decided to concentrate and restructure its corrugated operations in western Andalucia and make them more efficient. AssiDomän currently operates three plants in south-west Spain (Sevilla, Huelva and Jerez). Production volumes in Sevilla and Huelva will be transferred to a new modern integrated plant located between Sevilla and Huelva. The new integrated plant will concentrate the production of the two existing plants and will cause staff reorganisations related to better technology and efficiency. The integrated plant will have a final annual capacity of 2 75-85 million m with start of production planned for the beginning of 2001. The new plant is expected to employ 70-80 employees, most of them from the existing operations. The project involves net new investment of 9.1 MEUR plus substantial transfer of equipment currently in the Group. The investment meets the Group's 16% profitability target. With a market share of 35% in the agricultural market, AssiDomän has established very profitable operations in Spain and the investment will provide excellent opportunities for further sales development. The aim is to better serve the many existing industrial and agricultural customers in this important market plus allow expansion into Portugal and the Estramadura region of Spain. After the restructuring has been completed, AssiDomän's corrugated operations in Spain will comprise five corrugated production plants and one sheet plant. Production units will concentrate in the key regions of Catalonia (1), Valencia (1), Andalucia (3) and the Canary Islands (1). AssiDomän AB Corporate Communications 17 December 1999 For further information, please contact: Mark Kaluzny, Business Controller, AssiDomän Corrugated, tel +46 8 655 92 41 Berit Hallberg, Senior Vice President, Corporate Communications, tel +46 8 655 91 06 Frans Benson, Vice President, Investor Relations, tel +46 8 655 92 78 AssiDomän is one of Europe's leading forest products companies. Production is concentrated on sawn timber, packaging paper and packaging. The Group had a turnover of approximately SEK 24 billion in 1998 and has 17,000 employees. ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1999/12/17/19991217BIT00240/bit0001.doc http://www.bit.se/bitonline/1999/12/17/19991217BIT00240/bit0002.pdf