June 28, 2003 /Elopak has decided to concentrate the carton production of the two wholly owned Nordic manufacturing plants in Lahti, Finland. As a consequence, Elopak will close down the manufacturing plant in Spikkestad, Norway. New technology and changes in the market place have led up to an evaluation of Elopak's plant structure.

This decision is the result of a process that began in 1998. Elopak has been through an extensive turn around process and is today revitalized both with a view to operations as well as the financials, but this process is still ongoing. The process included an evaluation of the plant strategy, including the plant structure. A study on the optimization of the production structure favoured the Finnish plant.

'This has been a difficult decision, but I am sure that this will strengthen Elopak and the company's ability to offer secure employment on longer term', says President and CEO Bjørn Flatgård.

Lahti is also well located to serve developing markets in parts of Russia and the Baltic countries. This will open up new market possibilities for Elopak.

The closing of the Spikkestad manufacturing plant will have direct effect on 60 jobs in Norway. An expansion and production increase in Lahti is expected to be accomplished without considerable changes in the existing workforce. The move of production will start from the beginning of 2004 and will be completed within August the same year. A programme for actively supporting employees during this transition period will be developed together with employees' representatives.

Elopak Group Headquarters, the Elopak Technical Centre, Corporate Offices shall remain as central activity hubs in Norway, and the Market Unit in Norway will continue to serve the customers in Norway and Iceland.


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