Skärblacka paper mill faces production shutdown

Skärblacka paper mill faces production shutdown

If the members of the Swedish Paper Workers Union decide to carry out their
notice of total stoppage of work at Billerud's paper mill in Skärblacka at 06.00
CET tomorrow, 16 April, production at Skärblacka will come to a complete
standstill. 

The loss of production is expected to affect Billerud's earnings by
approximately SEK 3 million per day, and will lead to one-time costs of
approximately SEK 2.5 million for firing up and closing down the soda recovery
boiler. These costs are exclusive of any compensation that may be received from
the Confederation of Swedish Enterprise's strike fund (Sw. konfliktfond).

“It is extremely unfortunate if the Paper Workers Union decides to close down
this mill which is very important for Billerud and for our customers. This
action will be detrimental for our key customers as well as for employment
opportunities at the mill,” says Billerud's President and CEO, Per Lindberg.

For further information, please contact: 
Per Lindberg, President and CEO, +46 8 553 335 01 or +46 702 48 15 17
Bertil Carlsén, CFO, +46 8 553 335 07, +46 73 021 10 92

The information is such that Billerud is obligated to publish under the Swedish
Securities Market Act. Submitted for publication at 10.50 a.m. on 15 April 2010.

Billerud's business concept is to offer demanding customers packaging materials
and solutions that promote and protect their products - packaging that is
attractive, strong and based on renewable materials. Billerud has a
world-leading position within several product segments including paper for
consumer packaging and industrial applications. Production takes place at three
integrated pulp and paper mills in Sweden and at one paper mill in the UK.