KLIPPAN, Sweden, June 21, 2005 (PRIMEZONE) -- As part of the reconstruction of Klippan Molndal AB, the company has today implemented the previously reported intention to give notice of termination to some 250 employees at the production plant in Molndal.
The terminations are a result of the decision to close down the paper manufacturing and in the future only carry out contract sheet cutting of board and storage operations in Molndal.
Today, negotiations in accordance with the law of self-determination at work were concluded between Klippan Molndal AB and the unions regarding terminations arising from the company's plans for restructuring the operation.
The closing down of production at Molndal is also part of the continuing reconstruction of the KLIPPAN group. As a result of the close-down, the paper production will be moved to the production plants in Klippan and Lessebo, which means that these facilities will be utilized at full capacity.
For further information please contact
Thomas Billing, MD and CEO, +44 (0) 435-291 01 Guy Lofalk, Reconstructor, +44 (0) 8-22 09 00
KLIPPAN is a leading producer of speciality paper for the graphic industry with a total capacity of 200,000 tons per year. Production is carried out at the three mills in Klippan, Lessebo and Molndal.
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