Jul 27, 2007. /Lesprom Network/. The management of the Rottneros Group has been assigned by the board of directors to initiate negotiations with the unions at Rottneros mill regarding staff cuts to reduce the headcount by about 30. To make this staff reduction possible, an investment of some SEK 20 million ($3.0 million) in a new control room has been proposed. The planned staff cuts are part of a group-wide programme announced in February 2006 to cut costs by SEK 100 million ($14.9 million) with a focus on variable costs. The savings for 2007 are estimated to around SEK 85 million ($12.6 million). “These measures, which also involve an investment, are an important part of the process of making Rottneros Mill cost effective”, says Rottneros president and CEO Lars Blecko. He stresses, however, that long-term elevated electricity prices are still a threat to the production of energy-intensive mechanical pulp of the kind produced at Rottneros mill. Rottneros is one of the world’s leading independent producers of market pulp. With approximately 750 employees, the group has a turnover of approximately SEK 2.7 billion.