Today MUNKSJO announced the intention to form a world leading specialty paper company together with Ahlstrom Corporation’s business area Label and Processing. The combination is an important step in Munksjo’s growth strategy to become a major player in specialty paper and I am pleased to say that with this transaction Munksjo will achieve that.

A new Finnish company will be created, named Munksjo Corporation with head office in Stockholm, Sweden. Net sales 2011 will be approximately EUR 1.3 billion pro forma. Important growth potential will be added to the company with a selection of new specialty paper products such as Release liners, Flexible packaging, Poster papers and Coated Specialities in Brazil. In addition to the new products, resources within Decor papers and Abrasive backing will be enhanced. The transaction include six mills; Stenay, Rottersac and La Gere in France, Osnabruck in Germany, Turin in Italy and Jacarei in Brazil.

New specialty paper products, strengthened resources within existing product areas and the reinforcement in competency from the new employees will give the new Munksjo important growth potential, opportunities to improve efficiency and profitability and a reinforced manufacturing footprint and sales and marketing.

The combination requires approval from relevant competition authorities including the European Commission. During this period the two companies will keep acting as two separate entities and there’s no change concerning out relationship.

Please find attached a press release regarding the transaction that was distributed to the media earlier today and please don’t hesitate to contract us, should you have any questions regarding the combination.