Domsjo Fabriker invests in debarking facility; plans for biofuel production in Sweden

ORNSKOLDSVIK, Sweden, Oct. 4, 2010 (Press Release) - MSEK 850 were invested in the plant between 2000 and 2009. Additional investments of approximately MSEK 300 were approved during the last board meeting, in line with the board's goal to further develop operations. Investments include, among others, the modernization of equipment in the debarking facility and the construction of an additional lignin dryer.

The first Domsjö lignin dryer started in 2009. The product has seen a most favorable development on the market. Double drying capacity means double the amount of dry lignin as well as increased opportunities for quality improved and value-added product development.

Investment in the debarking facility is a step forward towards reaching an annual production of 255 000 tonnes of specialty cellulose. With Asia as the primary market for specialty cellulose, Domsjö will strengthen its position on the Chinese market where sales companies are being established.

In addition to the approved investments, the plans for the construction of a plant for the production of biofuel continue to move forward. Furthermore, there are several other ongoing growth-oriented projects to meet market demands for new green products and increased volumes.

The company's expansive development poses new challenges for the organization. The company therefore seeks to strengthen its ranks by new employments and also undergoes a change of its organization.

The business is to be divided into three units: the Business Unit (managed by Peter Blomqvist), the Engineering Unit (managed by Björn Edström) and the Production Unit (managed by Christin Norberg). Two departments, Finance (Carola Hägglund, controller) and HR (managed by Billy Nordin), will provide support to the three units.

Due to a high increase in external activities, CEO Ola Hildingsson will be active to a higher extent in Stockholm. Peter Blomqvist is the CEOs representative in Domsjö.