Stock Exchange release November 7, 2000 05:01:48 PM CET

METSO'S VALMET SUPPLIES EUR 100 MILLION PAPER MACHINE TO HOLMEN PAPER

Metso Corporation's fiber and paper technology business area, Valmet, has received an approx. EUR 100 million order from Holmen Paper AB of Sweden. Valmet will supply a large paper machine, PM 11, to Holmen's Hallstavik mill, located less than 100 km north of Stockholm. Start-up is scheduled for April 2002.

The new machine will replace the 35-year-old PM 11 and thus increase the mill's capacity for machine-finished magazine paper grades by 115,000 tons to 440,000 tpy. With a wire width of 9.3 m and a design speed of 2000 m/min, the new PM 11 will be Europe's largest for this grade.

The new machine's production will be high-brightness, improved newsprint, cold set offset and heat set offset grades, typically used in the rapidly growing market of special magazines, inserts and advertising materials. The delivery consists of a headbox, a former, a press, a dryer section, on-line calender, a reel, air systems, a winder, and auxiliary equipment.

So far, a total of 5 OptiConcept paper machines have been ordered.

During the 1990's, Valmet supplied the mill with two major paper machine rebuilds and several winders. Currently, Valmet is rebuilding PM12.

The Hallstavik mill employs approx. 1000 persons and earlier this year received an environment permit to increase paper production to 880,000 tons per year.