Aug 13, 2008. /Lesprom.com/. Holmen’s Board has decided to initiate negotiations to close down the business at Holmen Paper Wargön − Wargön Mill. The intention is for production to be totally discontinued in December 2008. The profitability of Wargön Mill has long been unsatisfactory. It has not been possible to obtain compensation on the market for steep increases in the cost of wood, energy and other input goods by raising selling prices. An upgrading of the mill requires considerable investments, but would still not be sufficient to reach an acceptable level of competitiveness and profitability. “Unfortunately, we have not succeeded in breaking this trend despite the dedicated efforts of all the personnel and various measures in the form of investments, production increases, and product development in recent years. Closing down Wargön Mill is the only rational decision and we regret that we have arrived at this conclusion,” says Magnus Hall, Holmen’s President and CEO. “The market for coated printing paper is highly competitive and Wargön Mill is one of the smallest mills in Europe manufacturing equivalent grades of paper.” Wargön Mill is a member of the Holmen Paper business area and has an annual output of 145 thousand tones of coated magazine paper for magazines and advertising print.