AssiDomän Invests

AssiDomän Invests The Board of Directors of AssiDomän has decided on investments totalling SEK 1.2 billion. These investments relate mainly to measures designed to enhance quality and efficiency. Bleaching in Frövi The largest single investment will be made at AssiDomän Carton in Frövi, Sweden. The ongoing project to extend capacity in the cartonboard mill will be completed in autumn 1997. In order to achieve greater integration between pulp and cartonboard manufacture, the Group is now investing MSEK 550 in a TCF bleaching plant with annual capacity of 100,000 tonnes of hardwood and softwood pulp. Annual pulp production is to be increased by 50,000 tonnes to 250,000 tonnes. In-house manufacture of bleached pulp at Frövi will also enhance cartonboard quality. The plant is scheduled to go into operation at the end of 1997. At Frövi a new MSEK 55 winder will also be installed - instead of a planned rebuild of the old winder - so that the capacity increase to 350,000 tonnes a year in the rebuilt and extended board machine can be achieved. The new winder is expected to go into operation in April 1998. In Skärblacka, Sweden, AssiDomän will invest MSEK 225 to rebuild PM7 and PM8 in order to increase annual production of MG paper from 55,000 to 78,000 tonnes. MG paper is used for packaging of food, and medical and hygiene products. The rebuilding, which will start in May 1997, means that tissue manufacture will cease. In the AssiDomän Kraft Products business area MSEK 60 will also be invested in a new secondary screen room at the Karlsborg mill. This investment will enhance product quality and provide environmental improvements. New premises will be built for MSEK 45, to house R&D and other activities, at AssiDomän Dynäs. Here, an further MSEK 22 is to be invested in an odorous gas collection and destruction plant and MSEK 33 in High Consistecy (HC) refining. Fiberpack expands AssiDomän has also decided to invest in an additional machine for packaging in moulded recycled fibre. Following its introduction in 1994, high-quality packaging made from moulded wood fibre has been successfully produced by AssiDomän Por-Pac in Sweden. The new machine, which is expected to cost MSEK 12, will be installed at AssiDomän Emballage in Herfølge, south of Copenhagen, which will thus become the first corrugated board company within AssiDomän Packaging to develop the moulded fibre packaging concept. The raw material comprises waste from corrugated board production. The extension of the factory will start in the summer and production is expected to begin in October this year. At the same time investments will be made in new die cutting and inline machines at the corrugated board factories in Denmark, Italy and Sweden (Förenade Well in Brännögård). The total investment in machinery will amount to MSEK 100. At AssiDomän Kraftliner in Piteå, Sweden, some MSEK 40 is being invested in new electrical precipitation filters in the lime kilns and in equipment for in-house sulphuric acid production. A new drying facility and renovation of the heating system at the Hasselfors sawmill will cost MSEK 25. AssiDomän AB Corporate Communications 18 June 1996 For further information: Hans Palm, Press Relations Manager, AssiDomän AB, +46 8 728 08 00 Lars-Erik Mellgren, Plant Manager, AssiDomän Frövi, +46 581 373 97 ------------------------------------------------------------ Please visit http://www.bit.se for further information The following files are available for download: http://www.bit.se/bitonline/1996/06/18/19990329BIT00120/bit0001.doc http://www.bit.se/bitonline/1996/06/18/19990329BIT00120/bit0002.pdf