Domsjö takes over chipping operations at Utansjö mill

UPPLANDS VÄSBY, Sweden, May 30, 2008 (Press Release) - The Rottneros Group has signed an agreement to sell the debarking and chipping equipment at Utansjö Mill to Domsjö Fabriker AB. At the same time a rental agreement has been signed for the land and the buildings housing the debarking and chipping operation. The reason for the move is that Utansjö Mill will cease operations in June this year.

The debarking and chipping facility, which works with aspen and spruce wood, has been supplying Utansjö Mill with chips for its CTMP line as well as debarked and cut wood for the groundwood line.

Domsjö Fabriker, which is located in Örnsköldsvik around 80 kilometres from Utansjö, needs additional softwood barking and chipping capacity due to its ongoing development programme, Domsjö 2010, which will increase production capacity.

"I am happy that the chipping and barking capacity and the infrastructure to handle large volumes of wood that exists will continue to be used," says Olle Dahlin, Managing Director of Utansjö Mill.

"For us, taking over the equipment at Utansjö is a convenient and cost-effective solution," says Domsjö Fabriker's Managing Director Ola Hildingsson. "We are counting on starting to use the debarking and chipping facility in August and this will provide work for about ten people in two shifts, five days a week."