RISI Identifies 17 Containerboard Machines in Europe with a High Risk of Closure

BRUSSELS -

RISI, the leading information provider for the global forest products industry, today announces the official publication of a new study titled: “The Western European Recycled Containerboard Risk of Closure Study.” This report analyses the risk of closure for 85 mills and 120+ machines, each ranked by major criteria such as cost position, market prospects for the grade, future regional wood supply, corporate significance of the mill, machine age and machine size.

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Despite previous closures that took place last year through the beginning of this year, a further 1.2-1.9 million tonnes of closures appears inevitable over the medium term due to a combination of new capacity entering the markets, pressure from increasing production costs and softer domestic demand in Western Europe. This report provides an independent perspective on which mills and machines may be affected.

Capacity Changes over 2009-2011 in Western Europe (in 000 Tonnes) 2009 % of 2008 2010-2011 % of 2008 —- ——— ——— ——— Announced Additions +1000 +6% +1200 +6% Announced Removals -450 -2.3% 0% -2.3% Assumed Net Capacity Changes -750 -4% -700 -3.8%

Orifjon Abidov, European Paper Packaging Economist at RISI, noted, “With about 1.2 million tonnes of low cost recycled containerboard capacity expected to enter the Western European market in 2010-2011, we expect downward pressure on operating rates and profit margins.” He continued, “Our capacity projections over the medium term assume operating rates at lower than historical levels, and we expect to see a number of machine closures.”

This timely study will provide an understanding of the changing demand/supply dynamics of recycled containerboard markets on a regional basis (Western, Central and Eastern Europe) and an assessment of the risks associated with individual mills/machines in Western Europe.

For more information on this study or to request a detailed prospectus, please contact:

- In Nordic and Eastern Europe: Tea Tuuli at +32-2-536-0743 - ttuuli@risiinfo.com - In EMEA & Oceania: Greg Ardoullie at +32-2-536-0753 - gardoullie@risiinfo.com - In Latin America: Luis Sucupira at +55-11-3848-9051 - lsucupira@risiinfo.com - In Asia: Levi Li at +86-139-1714-6037 - lli@risiinfo.com - In North America: Sara Girtz at +1-770-373-3001 - sgirtz@risiinfo.com or Natalie Rotondi at +1-781-734-8963 - nrotondi@risiinfo.com

More information is available online at www.risi.com/containerboardrisk.

About RISI

RISI is the leading information provider for the global forest products industry. We work with clients in the pulp and paper, wood products, wood biomass, timber, tissue and nonwovens industries to help them make better decisions. Headquartered in Bedford, Massachusetts, RISI operates offices in Brussels, Belgium; Atlanta, Georgia; San Francisco, California; Portland, Oregon; Sao Paulo, Brazil; Shanghai, China; Singapore; and Charlottesville, Virginia.

Press Contact: Claudia Montalvo RISI 326 Ave. Louise Brussels, B-1050 Tel: +322-536-07-47 Fax: +322-537-56-26 Email: cmontalvo@risi.com

Source: RISI

Claudia Montalvo of RISI, +322-536-07-47, Fax: +322-537-56-26, cmontalvo at risi.com