There has been a continued strong upward pricing cycle for pulp and other input costs during the last month. The global pulp market has also been seriously affected by the recent tragic events in Chile. The Chilean pulp industry, which accounts for about 8% of the global supply of pulp, has been badly hit by the earthquake. According to latest information given it looks like infrastructure i.e. railways, roads, bridges and harbours are severely damaged as well as electricity and water supply. It will take several months for the supplies of wood and chemicals to the pulp mills in Chile to run as normal. Shipments of finished pulp are also much affected.

The European paper producers see a high demand for wood free papers but the entire paper producing sector is negatively affected by escalating variable cost.

Arctic Paper can not fully absorb the increased cost in raw materials. We therefore announce another price increase of +10-12% for wood free coated and uncoated papers. The price increase will differ from country to country and per paper grade, and will also be based upon the price increases already made up to now.

The price increase will be implemented for all markets and deliveries from 1 June 2010 will be affected. Arctic Paper remains committed to serving customers with high quality fine papers and the group trusts on customers’ understanding.

Further information is available from:
Hans Karlander, Sales and Marketing Director, Arctic Paper S.A. +46 31 63 17 08