Borregaard intends to close pulp mill in Switze...

Borregaard intends to close its pulp mill in Switzerland. During
recent years the business has experienced financial losses, and is
now in a demanding situation both regarding its cost position and
market conditions. The outlook for the company indicates continued
losses, and therefore a process to close the mill in December of this
year has been initiated.


- We regret this serious situation for the company and the
difficulties this will create for our employees. During the last few
years we have worked hard to improve the situation, but we have to
realise that the mill is not profitable in today's market situation,
says Borregaard's President & CEO, Per Sørlie.

Borregaard's business in Switzerland had a turnover in 2007 of EUR
105 million. The company's competitive position has developed
negatively and despite notable improvements, substantial investments
are necessary to specialise the mill further. In addition, the mill
in Switzerland has experienced a strong increase in raw material and
energy costs, and the market development for important product
segments have had a negative development in recent months. Prospects
show no signs of improvement for the company.

Borregaard will establish financial support and offer practical
assistance to find new jobs for the 450 employees.



Contact person:
Communication Manager Tone Horvei Bredal, Borregaard, tel +47 924
67 711