Finnish viscose fiber producer Avilon reports ability to convert paper pulp to dissolving pulp

HELSINKI, May 19, 2011 (Press Release) - Avilon Ltd, part of Neo Industrial's Viscose Fiber business, has made a revolutionary innovation of converting paper grade pulp into dissolving pulp. The technology was developed on Avilon's R&D and Technology laboratory, and it has already been taken into production use on the company's Valkeakoski-based factory. The method is not used anywhere else in the world.

The technology enables high-quality products and excellent service availability, while solving the company's main raw material, dissolving pulp management in a competitive way, in both short and long term.

"I am very proud of the innovativeness of Avilon's team. Avilon is not merely a high-class viscose fiber producer, but also a globally significant bio economy player and a technological forerunner of its industry," comments Managing Director of Neo Industrial, Markku E. Rentto.

Avilon has now secured its short and long term pulp management with its own technology. Until now, Avilon's production has been dependent on market dissolving pulp, availability of which has been very limited and price exceptionally high. Avilon has recently entered long-term contracts regarding paper grade pulp deliveries with selected suppliers.

The patenting of this technology is underway. In the future, Avilon intends to also commercialise the method by licensing it.

Neo Industrial Plc's strategy is to invest mainly in industrial companies with similar synergic benefits. The aim of investments is with active ownership to develop the purchased companies and establish additional value. Returns are sought through both dividend flow and an increase in value. Neo Industrial's B shares are listed on the NASDAQ OMX Helsinki Stock Exchange.

Neo Industrial's business segments are Cable (Reka Cables, Expokabel, Nestor Cables), Viscose Fibers (Avilon) and Single Family Housing (Finndomo).

Source: Neo Industrial Plc