Korsnäs AB, which is a wholly owned subsidiary of Investment AB Kinnevik, has decided to further concentrate its production towards highly refined paper and board products with a high added value. As a result, the production of fluff pulp for hygiene- and table products will therefore cease by 1 May 2006. This, together with a number of measures to lower other costs for energy and raw materials, for example, may result in a reduction of the number of employees by approximately 60-70. Customary labor union ("MBL") negotiations will be initiated.
After full implementation of the measures the objective is to achieve savings of approximately SEK 150 M per annum.
The improved cost efficiency will strengthen Korsnäs' competitiveness and enable continued growth within highly refined paper and board products.
For further information, please contact:
Vigo Carlund, acting CEO Korsnäs AB 026-15 10 17
Johanna Stenson, Communications 026-15 10 17 eller 070-795 10 17
Korsnäs AB is a wholly owned subsidiary of Investment AB Kinnevik which is listed on the Stockholm Stock Exchange. Korsnäs is a leading producer of high quality paper and cardboard products.