Feb 03, 2009. /Lesprom.com/. Pulp producer Rottneros reports continued loss and strained liquidity. The result after net financial items for 2008 amounted to SEK -385 million (-$47 million), compared to SEK -384 million (-$46.8 million) 2007. The company is now negotiating with its lenders to secure short-term liquidity requirements. Rottneros' income has been affected by the significantly weaker market, where the price and demand for pulp fell sharply in the 4Q. This forced Rottneros in the 4Q to limit production at several mills to avoid the accumulation of excessively large stocks. Due to the weak market, Rottneros' liquidity is strained. Rottneros is therefore negotiating with the company's lenders to secure the short-term liquidity requirements and for a respite in order to make necessary changes to the operational and financial structure. Rottneros' income after net financial items for the 4Q 2008 amounted to SEK -169 million (-$21 million). The operating income for the 4Q amounted to SEK-135 million (-$17 million). The income after net financial items for the full year 2008 amounted to SEK -385 million (-$47 million), of which SEK 106 million ($13 million) relates to the depreciation of fixed assets at Miranda mill in Spain following an impairment test, and SEK -115 million (-$15 million) relates to losses at the Utansjö mill until its closure. Higher costs for wood and electricity reduced earnings by SEK 193 million ($23.5 million) in 2008 compared to the previous year. Rottneros is a non-integrated, flexible supplier of customised, high-quality paper pulp.