Rottneros initiates investment program to increase capacity in both its mills, Vallvik Mill and Rottneros Mill.

The Rottneros Board has decided to make the first investments of 180
MSEK to increase production capacity at both the Group mills, Vallvik
Mill and Rottneros Mill, to ensure continuous progress and growth.


This means that the new plan prepared by management, Agenda 500, starts
immediately. Agenda 500 is a long-term industrial plan to increase the
capacity of the Group through successive investments. Investments are
made in renewed production equipment and organization to increase
capacity and eliminate bottlenecks in the two mills.

 

The long-term objective is to expand Rottneros’ total capacity to reach
a business volume of at least 460,000 tons of pulp annually, compared to
the 345,000 tonnes produced last year. The rate of the investments will
be determined by Rottneros’ ability to allocate the increased volumes in
the market.

 

The total framework amounts to around SEK 800 million for the whole
Agenda 500 divided into SEK 400 million medium-term and SEK 400 million
in the longer term.

 

“We are very pleased with the positive development within Rottneros and
the implementation of Fokus 15. Agenda 500 builds on our successful
focus on high-quality pulp and we look to the future with great
confidence”, says Chairman Rune Ingvarsson.

 

Rottneros’ CEO Per Lundeen, who together with the management teams at
the two mills has developed Agenda 500, is convinced that the operations
will gain significantly from continued investment and development of the
niche strategy.

\"The Vallvik Mill and Rottneros Mill produce high quality and
specialized pulp and they have been very successful with their market
positioning towards more and more specialty products. The success of our
specialty products has created resources and given us the courage to
take this step and thus secure the future of the Rottneros Group and the
two mills.\" says Per Lundeen.

 

For further information, please contact: Per Lundeen, CEO Rottneros AB,
+46705183347

 

Rottneros discloses the information provided herein pursuant to the
Securities Markets Act and/or the Financial Instruments Trading Act. The
Information was submitted for publication on 13 May 2015 at 08:03 CET.