Holmen to Invest MSEK 75 in Iggesund Sawmill


STOCKHOLM, Sweden, March 7, 2002 (PRIMEZONE) -- The Board of Holmen has decided to complete the Iggesund Sawmill by investing MSEK 75 in a new wood sorting unit with the object of significantly improving the sawmill's profitability.

The investment will replace the previously announced finishing unit, the cost of which was estimated at MSEK 175.

The new unit is expected to be brought into production at the end of the current year, at which time Iggesund Timber will discontinue its activities at Hastaholmen in Hudiksvall.

As a consequence of this investment and the plans to discontinue the activities at Hastaholmen, Iggesund Timber will open negotiations pursuant to the Swedish Co-Determination at Work Act on reductions in the work force.

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