Cutbacks at Braviken Paper Mill

Cutbacks at Braviken Paper Mill

Holmen Paper is opening union negotiations to reduce the workforce at
Braviken Paper Mill, outside Norrköping. The reasons for the cutbacks
are continued poor profitability and increasing competition.

Employees were informed on Wednesday about the coming job cuts, which
will affect around 80 people.

“Holmen Paper's profitability is already low and we are continuing to
experience tough market conditions,” explains Henrik Sjölund, head of
Holmen Paper. “We are therefore stepping up work on cutting our fixed
costs. Unfortunately this will mean losing some employees.”

In addition to job cuts at Braviken Paper Mill, Holmen Paper is also
overhauling its central functions such as marketing and sales. Alongside
this, the company is switching to more refined products.

“Holmen Paper is in the middle of restructuring the Swedish units so
that they produce more refined and thus more profitable products, and
that strategy will remain in place,” states Henrik Sjölund. “We are
exploiting the competitive advantages that our access to virgin fibre
brings and increasingly becoming a specialist paper company.”

________________________________________________________________
For further information, please contact:
Jonas Lindell, public communications manager Holmen Paper, tel. +46 70 -
323 20 13
Ingela Carlsson, public relations director Holmen, tel. +46 70 - 212 97
12

In its capacity as issuer, Holmen AB is releasing the information in
this press release in accordance with Chapter 17 of the Swedish
Securities Market Act (2007:528).
The information was distributed to the media for publication at 11.00
CET on Wednesday 16 November 2011.