Rottneros ordered to build biological treatment plant in Vallvik

UPPLANDS VÄSBY, Sweden, April 30, 2008 (Press Release) - Further to an environmental ruling issued by the Environmental Division of the Svea Court of Appeal, the Rottneros Group has been ordered to have a biological treatment plant in operation at Vallvik Mill by 2010. The cost is estimated to just over SEK 100 million. Rottneros will consider the possibility of lodging an appeal to the Supreme Court.

The case is based on a call made by the Gävleborg County Administrative Board for a plant to be built for biological treatment of process water. The Rottneros Group rejected the demand on the grounds that the environment in Ljusnefjärden is in very good condition, and a biological treatment plant would not result in environmental improvement. An environmental ruling issued by the Environmental Court in Östersund in spring 2007 stated that a plant must be operational by 2010. It is the appeal against this ruling which has now been dismissed.

"I am surprised at the ruling," says Rottneros' CEO Ole Terland. "All the measurements carried out by independent experts show that a biological treatment plant would not have a positive impact on the environment in Ljusnefjärden, which is the part of the Sea of Bothnia in question. On the contrary: such a plant would increase the environmental burden as a result of increased consumption of energy and chemicals. We will now consider the possibility of lodging an appeal to the Supreme Court."

"It would of course be unfortunate to be hit by what we see as an unnecessary expense of just over SEK 100 million. This would limit the possibilities of more offensive investments in the production of green electricity amongst other things as a means of increasing the mills competitiveness", states Ole Terland.