Holmen invests in energy and pulp provision facilities at Iggesund Mill

Holmen invests in energy and pulp provision facilities at Iggesund Mill

The Board of Holmen has decided to invest in a new soda boiler and turbine at
Iggesund Mill. The investment will total SEK 2.3 billion and also covers
equipment for capturing and incinerating weak, sulphur-containing gases. This
equipment will further contribute to reducing the mill's emissions to air.

“The investment means an increase in energy efficiency and the opportunity for
Iggesund Mill to become self-sufficient in terms of electricity, which is
crucial to its profitability and competitiveness,” says Holmen's President and
CEO Magnus Hall. 

The new soda boiler and turbine mean that the capacity of the mill to produce
its own electricity will increase from today's 210 GWh to 520 GWh, and that
annual pulp production can gradually be increased from 355 000 tonnes to 420 000
tonnes. The investment will provide the conditions for running the operation
without using any fossil fuels or purchasing electricity externally.

The construction period is estimated at two years and will involve employing 1
000 people.  


For further information please contact: 
Björn Kvick, head of Iggesund Paperboard, +46 70 673 16 40
Staffan Jonsson, mill manager Iggesunds Mill, +46 70 690 88 73
Ingela Carlsson, public relations director, Holmen, tel. +46 702 12 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
09.30 CET on Thursday 20 May 2010.