Billerud starts negotiations to cut production at Gruvön mill

Billerud starts negotiations to cut production at Gruvön mill

Billerud started statutory negotiations (MBL) with the trade unions today
concerning a reduction in production at Gruvön mill in Värmland. Production on
PM3 at Gruvön will stop until further notice. Annual production on PM3 amounts
to around 15,000 tonnes of MG paper.

“Our goal is profitable and long-term supplies of the best products to our
customers. We must therefore always adapt our activities to current cost levels
and market conditions. Until further notice, we will therefore now focus our
production on our most cost-effective machines and that means taking PM3
temporarily out of production. These changes will mean the loss of 16 jobs. We
expect to solve this via natural job turnover,” says Per Lindberg, President and
CEO of Billerud.

Gruvön mill in Värmland, Sweden, has around 1,000 employees and total production
capacity of around 685,000 tonnes of which around 115,000 tonnes are market
pulp, 130,000 tonnes are kraft paper and 440,000 tonnes are containerboard.

Stockholm

1 October 2008

Billerud AB (publ)

Per Lindberg

President and CEO 

For further information, please contact:

CEO, Per Lindberg +46 8 553 335 01, +46 70 248 15 17

Mill manager, Billerud Gruvön, Per Bjurbom +46 555 410 20, +46 70 606 43 63

Billerud is a packaging paper company. The company's business concept is to
offer demanding customers packaging material and solutions that promote and
protect their products - packaging that is attractive, strong and made of
renewable material. Billerud has a world-leading position in several product
segments, both within paper for consumer packaging and for industrial
applications. Billerud's production takes place at the Group's three integrated
pulp and paper mills in Sweden and at a mill in the UK paper.