2.7-3.5 Million Tonnes of Coated Paper Capacity to Close in Europe by 2015

Current overcapacity in European coated papers market at 1.2 million tonnes

BRUSSELS, December 20, 2010 - Western European demand for coated papers has matured and the post
recession rebound in demand is over. According to RISI's new European Coated
Papers Risk of Closure Study, overcapacity of both coated woodfree and coated
mechanical papers has reached 1.2 million tonnes, lowering prices and
affecting producer profitability in Europe. With coated woodfree capacity in
China forecast to exceed domestic demand by the end of 2011 and new capacity
in Russia, export prospects of Western European coated paper producers are
threatened and capacity closures of 2.7-3.5 million tonnes are expected by
2015.

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"Coated paper mills are currently operating at a loss in Europe. To
maintain profitability, prices will have to rise and capacity needs to be
balanced, through closures," said Sampo Timonen, Director of European Graphic
Papers at RISI, and author of the study.

Timonen analysed ninety paper machines and twenty producers for this
study and created a methodology that compares company and machine risk
against the industry average using a range of criteria - financials,
long-term cost position and the strategies of coated woodfree and coated
mechanical producers in Europe - to evaluate the machines most likely to
close on a permanent basis. The European Coated Papers Risk of Closure Study
analyses machine risk of closure by company, indicating machines likely to
face proactive closure, potential divestments and closures due to bankruptcy.

More information, about the study can be found at
www.risi.com/eurisk

About RISI

RISI is the leading information provider for the global forest products
industry. The company works with clients in the pulp and paper, wood
products, timber, biomass, tissue, nonwovens, printing and publishing
industries to help them make better decisions.

Headquartered in Boston, MA, RISI operates additional offices throughout
North and South America, Europe and Asia. More information can be found at
www.risi.com.

    Contact:
    Nichola Heer
    Marketing Manager, Forecasts & Analysis, RISI
    326 Avenue Louise, Bte 22
    1050 Brussels
    Belgium
    Email: nheer@risi.com
    Tel: +32-2-536-0770

Nichola Heer, Marketing Manager, Forecasts & Analysis, RISI, nheer at risi.com, Tel: +32-2-536-0770