KLIPPAN, Sweden, March 21, 2002 (PRIMEZONE) -- Klippan AB, with paper mills at Klippan and Lessebo, is expanding and acquiring Stora Enso Molndal AB. Klippan will thus become the leading supplier of coloured fine paper in Europe and will also widen the range with fully coated fine paper for graphic use.
Klippan and Molndal have the same specialization with production of office paper and paper for the graphic industry, of which nearly 80 per cent is exported, mainly to Europe. Klippan, with a staff of just over 500, recorded a turnover of MSEK 866 in 2001 and achieved a profit after financial items of MSEK 33. Molndal has just over 400 members of staff and had a turnover of MSEK 725 in 2001.
"With the three mills we can refine the production and improve logistics by specializing at each production unit," said Bengt Ostensson, President of Klippan. "We are widening the range, both with products that are new to us and with more trademarks. In this way we can become an even more extensive supplier to the paper wholesalers. We are pleased to be able to take this pro-active step following the last years' focus on cost control. The expansion is an important step in the development of Klippan, which has shown positive results for the last two years."
For Molndal, the deal means the arrival of an owner whose strategy is well in line with the unit's specialization on graphic speciality paper. "For some time, Stora Enso has been looking for a suitable buyer for the mill, where Molndal's quality products will be favourably developed. We are convinced that Klippan AB is the right environment for the unit," said Stig Johansson, Senior Vice President, Stora Enso.
Klippan is paying MSEK 75 for the shares in Stora Enso Molndal AB and will take over loans in the company. A series of switches of production between mills is planned during the year and will involve considerable rationalization. After the planned restructuring, the annual synergies are expected to amount to approximately MSEK 40. The completion date for take-over is planned for April 2, 2002.
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