Reduced workforce in Madrid

Reduced workforce in Madrid

29 people will be made redundant at Holmen Paper's mill in Madrid as
part of an ongoing efficiency drive. This drive also includes looking
into alternative options for PM 61.

The smaller of the mill's two paper machines, PM 61, is operating at a
loss and has done so for some time, despite active improvement measures.
These have included switching from production of newsprint to production
of coated printing paper, LWC, based on 100 per cent recovered fibre.
Since September employees have been temporarily laid off due to the
shortage of recovered paper. The workforce reduction now being announced
is part of a wider review of costs.

“The market situation for printing paper continues to be tough. The
shortage of recovered fibre and the resulting cost increase means that
in parallel to workforce reduction, we're looking into different courses
of action for PM 61. One possible path is to switch to other product
areas, which can be achieved in partnership or in their entirety by
another player,” comments Arne Wallin, head of Holmen Paper.

The staff cuts will be made with immediate effect and affect 29 people,
of which seven work in production and 22 have administrative duties. The
cuts will take place in parallel with a new organisation entering into
force. After these measures have been taken, Holmen Paper Madrid will
have 320 employees.

Footnote: Holmen Paper acquired the mill in Madrid and PM 61 in 2000.
The machine has a capacity of 170 000 tonnes of printing paper. PM 62
was commissioned in 2005, with a capacity of 330 000 tonnes of
newsprint.

Contact:
Arne Wallin, head of Holmen Paper, tel. + 46 (0)11-23 62 21
Ingela Carlsson, public relations director, Holmen, tel. + 46 (0)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 12.00 CET on Thursday 14 October 2010.