Rottneros to invest in closing the water loops in bleaching plant at Vallvik mill in Sweden; expand pulp capacity 20%

STOCKHOLM, Dec. 16, 2010 (Press Release) - The Board of Rottneros AB has decided to invest in closing the water loops in the bleaching plant at Vallvik Mill at a cost of SEK 90m. This investment comprises the final part of the programme of measures previously communicated in, for instance, the new share issue prospectus in 2009. The closure of the bleaching plant will significantly reduce water usage. One important consequence of this is that the biological external water purification plant that is currently being built can be kept significantly smaller. There will also be a slight reduction in the cost of power and chemicals.

The agreed investments will help Vallvik Mill to meet the extended requirements for water purification that will apply from 2012. These investments will also lead to a twenty per cent increase in capacity at the factory, from 200,000 to 240,000 annual tonnes of sulphate pulp. The current production permit is limited to 220,000 annual tonnes and a request for a temporary extended permit for 242,000 annual tonnes has already been submitted to the relevant environmental authorities.