STOCKHOLM, Sweden, Sept. 4, 2003 (PRIMEZONE) -- Holmen (LSE:HOLMbq) Iggesund Timber inaugurated the new grading department at its Iggesund sawmill on Thursday. The total investment in the new grading department - where the sawn timber is quality graded and packed - and storage facilities for semi-finished and finished products, amounts to MSEK 75.
The unit has been in operation since March. With the new grading department in production, Iggesund Timber -- Holmen's sawn timber business -- has now concentrated all production at Iggesund.
Iggesund Timber has completed an extensive action programme that has been in progress since the beginning of 2001. The closure of unprofitable units -- including the sawmill in Domsjo, which was finally taken out of production on 31 July 2001 - and rationalisation at the sawmill in Iggesund, including the closure of Hastaholmen, have resulted in considerable improvements in productivity and significantly higher profitability.
Iggesund Timber's products are mainly used by the joinery industry in England and Scandinavia. Iggesund Timber is currently one of Scandinavia's largest suppliers of raw materials for solid redwood flooring. Other important customers include the turning and the furniture industries.
The new grading department was inaugurated by Christer Eirefelt, the County Governor of the County of Gavleborg.
For further information please contact Johan Hedin, President Iggesund Timber: +46 650 280 00
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