ROTTNEROS INAUGURATES NEW STEAM TURBINE IN VALLVIK – FOR MORE GREEN ELECTRICITY

In April 2006 the Rottneros Board of Directors decided to invest in a new steam turbine to increase electricity production in Vallvik. The turbine, which produces green electricity, is driven by steam produced in the paper pulp production process.

Installation of the steam turbine was completed during the summer and on Wednesday it was inaugurated with the help of Governor of Gävleborg County, Gun-Marie Pettersson, Chairman of the Söderhamn Council, Birgitta Tapper and Rottneros’ Chairman, Bengt Nordin.

“The new turbine is another move to increase the Group’s self-sufficiency in electricity. It is particularly gratifying to be able to launch it at a time when electricity prices are on the rise again,” says Lars Blecko, CEO of Rottneros.

The investment in the new turbine amounts to around SEK 90 million. Its capacity is 28 megawatts, which means that the electricity self-sufficiency level at Vallvik Mill will increase from around 70 to almost 100 per cent. In addition, the mill will be less vulnerable to disruptions in the external power grid.

The mill is prepared for a possible future increase in production capacity from today’s level of 200,000 tonnes of pulp per year.

For more information, please contact:

Lars Blecko, President & CEO Rottneros AB, tel. +46 70 641 4910

Hannu Thomasfolk, Managing Director Vallviks Bruk AB, tel. +46 270 62111 or +46 70 604 2938

Images are available at: www.rottneros.se/pressimages

Rottneros is one of the world’s leading independent producers of market pulp. The Group comprises the parent company Rottneros AB, listed on the Stockholm Stock Exchange, and its subsidiaries Rottneros Bruk AB, Rockhammars Bruk AB, Utansjö Bruk AB and Vallviks Bruk AB in Sweden and Rottneros Miranda, S.A. in Spain, all with operations involving the production and sale of market pulp. The Group also includes the wood procurement companies SIA Rottneros Baltic in Latvia and Rottneros Madeiras in Portugal as well as a sales company in Belgium. The Group now has a new division, Rottneros Packaging, which produces food packaging made from paper pulp. The Group has around 750 employees and net sales of approximately SEK 2.7 billion.