AssiDomän Kraftliner increases integration of pulp and paper production

AssiDomän Kraftliner increases integration of pulp and paper production The AssiDomän Board of Directors has made a decision regarding increased integration of pulp and paper production at AssiDomän Kraftliner in Piteå in Northern Sweden. This will be achieved through increased bleaching capacity, which will reduce costs for manufacturing of white top kraftliner. Investments will be made in the existing digester, bleach plant, recovery boiler and lime kiln and will also include increasing bleaching capacity from 90,000 to 125,000 tonnes of birch pulp per year. Installations and rebuilding will take place in connection with the planned maintenance stoppage in the autumn of 2000. The overall investment is estimated at SEK 138 million (15.9 million euros). During 1999 paper machine no. 2 has been rebuilt to produce lower grammages and the total production capacity is increased. Better integration will further raise efficiency and reduce production costs for white top liner. The investment will mean that the proportion of the relatively more profitable white kraftliner, which is less sensitive to the economic cycle, can be increased, while dependence on brown liner products will diminish. The European market for kraftliner amounts to around four million tonnes, of which one million tonnes are white top grades. Demand for corrugated cases featuring top class printed text and graphics is increasing, resulting in higher demand for white top liner products. The white top kraftliner market is growing at around four per cent a year. The investments are also expected to achieve quality improvements. For example, the proportion of birch pulp used in the top layer of white top liner can be increased, which will enable a thinner top layer and thus a greater proportion of the base layer, which is made of stronger, unbleached long-fibre pulp. AssiDomän AB Corporate Communications 9 December 1999 For further information, please contact: Pentti Pärssinen, Managing Director AssiDomän Kraftliner, tel. +46 911 971 59 Tore Persson, Mill Manager, AssiDomän Kraftliner, tel. +46 911 971 91 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/1999/12/09/19991209BIT00090/bit0001.doc http://www.bit.se/bitonline/1999/12/09/19991209BIT00090/bit0002.pdf