In a major effort to improve air quality in the city, Brisbane City Council has decided to order up to 120 gas-powered Scania city buses over a three-year period. The switch from older diesel buses to new low-floor gas buses will reduce harmful exhaust emissions by more than 90%, while enhancing passenger access and comfort.
The Right Honourable the Lord Mayor of Brisbane, Jim Soorley, said in a public statement: “The key aims in our five-year integrated-transport strategy are to reduce congestion, improve public transport, and protect the environment. Following an exhaustive 18-month evaluation process, the Brisbane City Council will contract Scania Australia to supply up to 120 compressed-natural-gas (CNG) buses over a three-year period. These new buses will make a significant contribution to improving Brisbane’s air quality. Compared to Euro 2 emission standards, the exhaust from the new natural gas buses will have 99 per cent less carbon monoxide emissions and 93 per cent less particulate emissions.”  

Kneeling for Comfort
The buses feature new-style air-conditioned bodywork with a low floor all the way to the rear axle. Full air suspension with a kneeling facility is fitted for comfort and ease of access. Disk brakes all around provide maximum safety and easy servicing. The chassis components will be supplied by Scania in Sweden. The bodies will be built at the bus workshops of the Brisbane City Council in cooperation with the Australian coachbuilder Volgren, an agreement that will generate 40 jobs. More than 100 gas-powered Scania buses have been operating in Sydney, Australia, for several years.

Iceland Telecom (Siminn) is among the world’s first operators to run a commercial field trial of Ericsson’s iPulse communications portalìan intelligent, IP-based application to simplify and make communications more convenient for users.
With iPulse—which has been a joint development with OZ.COM—Iceland Telecom will be able to offer its subscribers an application that instantly and easily connects users to each other by mobile phone, pager, Personal Digital Assistant (PDA), home phone, or computer using a simple point-and-click contact menu. With a click of an icon, users can create profiles that indicate when, by whom, and how, they want to be reached, so they utilize the most efficient communication methods across multiple networks and multiple devices.

Maintaining Subscriber Loyalty
“Siminn looks to iPulse to maintain its leadership in superior services and building added value to maintain subscriber loyalty,” says Gudmann Bragi Birgisson, head of Siminn Internet, in Iceland. “iPulse opens new means for us to brand and differentiate our many communications services including the basic Internet connection,” added Mr. Birgisson.

Iceland 80% Online
“We at OZ.COM are very pleased that Siminn Internet will be among the first operators in the world to deploy iPulse. It certainly demonstrates their commitment to lead in the new communications era in a country that prides itself for having over 80 percent of its population online and mobile,” says Skli Valberg "lafsson, COO of OZ.COM. “We look forward to working closely with Siminn Internet in making iPulse a showcase of how users can experience greater mobility and personalization in the fast developing era of wireless communications.”

Turning wine into wetlands
BRL Hardy, one of the world’s largest wine producers, is sponsoring The Swedish Wetland Fund in the latter’s efforts to regenerate Sweden’s wetland environments. BRL Hardy will donate one Swedish Krona for each bottle sold. The CEO of BRL Hardy, Christopher Carson, presented the fund with a donation of 10,000 Euros at the launch of Banrock Station’s new Chardonnay and Shiraz wines in Stockholm. The program follows a similar one launched in the Netherlands for the De Weerribben wetlands in the northeastern part of the country.
Speaking at the launch, Lars Hellgren, the head of the Fund, welcomed the partnership: “I am delighted that BRL Hardy has chosen to sponsor the Wetland Fund. We now have a situation in Sweden in which 70–80% of the wetland area in the south has been lost due to mismanagement, and this funding will go a long way in helping us to address this.”

Worthless Wetlands Now Worthwhile
The problem in Sweden is largely due to overgrazing, which has stripped the wetlands ability to regenerate. Wetlands were once regarded as worthless, environmentally speaking, but they are now recognized as playing a vital role in the regeneration of flora and fauna.

Environmental Scientist and Manager of Banrock Station Vineyard in South Australia, Tony Sharley, spoke enthusiastically about his hopes for the project. “Its wonderful that we’ve found a partner to sponsor here in Scandinavia and we look forward with great anticipation to working with the Swedish Wetland Fund. In Australia, 50% of the wetlands have been destroyed in just 200 years, and we hope that we can use our experience and funding to avert a similar situation in Sweden.”

The environment-conscious wine producer sponsors a similar program in Australia and generates up to 200,000 dollars annually for the Australian Wetland Foundation.

Chassis assembly and bodybuilding will both take place locally in South Africa within the framework of a new partnership between Scania and Great North Transport. The agreement also includes a full vehicle-management support program, whereby Scania will operate the service workshops.  

Furthermore, the deal has promoted close collaboration between Scania and the official traffic and transport authorities in the Northern Province. They will work together on the creation of timetables and route networks to develop bus operations throughout the region.  

High Accident Rate in South Africa
The Swedish South African Partnership week also provided the backdrop to a road safety seminar organized by Scania on the Gallagher Estate just outside Johannesburg. Considerable emphasis was placed on the need for safer passenger transport in South Africa, which suffers from a very high road-accident rate.  

“This agreement is a major step on the road to safer traffic in South Africa,” said Jan Jarlhage, Managing Director, Scania South Africa. “What is more, these new buses will help improve the traffic environment, since they are all equipped with Scania’s Euro 2 nine-liter engines.”   Scania is one of the world’s leading manufacturers of trucks and buses for heavy transport applications. Scania products are marketed in about 100 countries worldwide and approximately 96% of its total production is sold outside Sweden.



Heading into the 21st century
At a road safety seminar in Brussels recently, Scania unveiled its concept truck for the second decade of the 21st century. The concept has the potential of significantly reducing congestion on the roads. The truck features advanced aerodynamic design and numerous other innovations, with big gains in safety, efficiency, and environmental impact.
Built as a 28-meter, 60-tonner, the truck is a logical follow-up on the concept truck presented and demonstrated by Scania and Krone, a German trailer manufacturer, at the Hanover exhibition in 1998. The rig features a 50% capacity increase in both payload and volume and 20–25% reductions in fuel consumption and emissions per tonne transported, compared with a normal European semitrailer rig.

The eight-axle combination consists of a standard rigid truck, to which a semitrailer is coupled by means of a dolly. In addition to the front axle, the rear-most axle on the truck, one dolly axle, and the rear-most trailer axle are steered, making a total of four steered axles.  

Major Aerodynamic and Safety Gains
The aerodynamics of the concept truck are highly advanced. Its shape has been optimized at the front, along the sides, and at the rear to bring air-drag coefficients down to passenger car levels, saving fuel and lowering emissions.

Both truck and trailer are provided with ‘boat-tails’ to minimize turbulence. These flaps pop out at high speeds, extending the overall length slightly and allowing the airflow to depart smoothly behind the vehicle. Wind-tunnel tests have shown that the boat-tail on the trailer alone reduces air drag for the whole combination by more than 10%, an improvement that corresponds to fuel savings from perhaps a decade of engine research and development.  

Sixty-Four Tonnes Possible
The cargo volume is 50% up on a conventional European 40-tonne semitrailer rig with five axles. The concept vehicle, with its eight 8-tonne axles, has a technical gross weight of 64 tonnes. Assuming a 50% increase in load capacity (by volume or weight), the number of trucks used for a given transport task can be reduced by one-third.

None of the eight axles puts more than eight tonnes on the road. The vehicle has four steered axles and road-friendly air suspension. All this means that wear and tear on the road surface is substantially reduced compared to that of a conventional semitrailer rig, which scuffs off a great deal of rubber on tight corners due to its rigid bogie.

Haulage in the Next Decade
Studies within the European Union indicate that road transport is expected to increase by 50% in the next 10 years. Stiff competition on the haulage market means that each vehicle must be put to maximum use, running virtually around-the-clock. Annual mileage is therefore expected to rise by 40% and the number of trucks, by 25%.

The truck is fitted with the latest in engine and transmission technology, including a highly efficient 12-liter turbo-compound engine and an automated transmission system.



Troll production startup
Production on Troll C started on Sunday, 31 October, at 21.40. The platform is situated approximately 14 km northeast of Troll B on the Norwegian continental shelf.
The first few days of production have confirmed that the equipment is working as it should. According to plan, eight predrilled wells are to be started up during the first few weeks. Daily output from the three wells currently in production amounts to approximately 35,000 barrels.  

Best on the Shelf
At peak, both Troll B and Troll C will have the highest oil production from a single field on the Norwegian continental shelf, a total of 300,000 barrels a day. Troll Oil is also the country’s largest oil field in terms of remaining reserves.

Ten years ago, it was uncertain whether commercial recovery of the thin oil zones would be at all possible. Production from Troll B, however, which started in 1995, has proved highly successful and now that Troll C is also in operation, it is calculated that the Troll field may yield 1.2 billion barrels of oil.

No Rig on Platform
Troll C is a floating production platform without a drilling rig. The wells will be drilled by separate drilling rigs that are hired in for this purpose. Under normal conditions, it is possible to operate Troll C with a team of 35 to 40 persons.

Hydro is the operator of Troll with an ownership stake of 7.69%. Statoil has an 11.88% interest, SDFI (State Direct Financial Interest) owns 62.7%, Shell 8.29%, Saga 4.08%, Elf 2.35%, Conoco 1.66%, and Total 1.35%. Next year, Saga’s share will be distributed equally between Hydro and Statoil.



SCA expands packaging operations
SCA has reached an agreement covering the acquisition of the Danish packaging company Danisco Pack, having operations in Denmark, Germany, and Norway.
At the request of SCA, units in the U.K. were not included in the acquisition. The acquired operations include four corrugated board plants, two converting units, special units for production of plastic inserts (EPS) and cartons, as well as a testliner mill in Grenå. These include a corrugated board plant and converting unit in Germany.

Scandinavia’s Largest Mill
Annual production of corrugated board amounts to 172 million square meters and paper to 200,000 tonnes. Danisco holds a 27% market share in Denmark, which means that SCA’s total market share in Denmark will amount to 44%. The acquisition complements SCA well, geographically as well as in terms of customer structure.

The testliner mill, which is characterized by very high efficiency, is Scandinavia’s largest mill based on recovered paper, and 90% of its production is sold in the Scandinavian market. A potential for synergy gains will be created through the coordination of converting operations, significantly increased paper integration and reduced investment requirements.



Bukowskis looks to Internet
The annual Swedish Marketing Association Conference was held in Stockholm this month and saw speakers from around the world give advice and express their visions for the future. Carl-Gustaf Petersén, Managing Director of Bukowskis Auction House, spoke about the way he plans to use the Internet as the driving force of the company’s global expansion.
Founded in 1870 by a Polish exile, Henryk Bukowski, The Bukowski Auction House is the oldest and most well known in Scandinavia. In its 130 year history, it has sold collections belonging to King Charles XV, Christian Hammer, and the original paintings of Anders Zorn. Most recently, it made headlines when it sold a Viking battlehorn (Oliphant) for SEK 17 million (US$ 1.85 million)—the most expensive work of art ever sold in Scandinavia [click on camera symbol below]. With this kind of reputation and the popularity of the Internet, Mr. Petersen is looking to seriously build on its 60% share of the Scandinavian fine-art market through the Internet.

Convenience Biggest Internet Potential
Speaking at the conference he said, “The Internet will be, and in fact already is, the major driving force of our expansion so far. Without doubt, it will revolutionize auctioning as we know it.” However, he was keen to point out that Internet marketing should not mean ignoring the importance of conventional marketing . “For every crown spent on Internet marketing, at least four crowns should be spent on conventional marketing so that we don’t got lost in the huge volume of information. However powerful the Internet is, people will always need to know you exist first!”

Mr. Petersén sees the auctioning of consumer goods as the market with the biggest potential owing to the convenience of the Internet, but emphasized the importance of preserving the prestigious name of Bukowskis. “It’s quite possible that in the future, people will buy and sell TV sets through a Bukowskis online service, although it won’t be under our name. It’s important that we are associated with what we were established to do first and foremost, and that is auction works of art.”



Nobel Biocare — new implant systems
Nobel Biocare’s target is to introduce at least two major products every year within its Dental Implants business area. Now, two innovative product systems are being launched.
The new implant Brånemark System Mk III is a universal fixture that considerably simplifies treatment owing to its innovative design. The Steri-Oss Replace Select is a comprehensive and flexible system that makes one-stage implant treatment possible, thereby helping to shorten treatment times for dentists and patients alike.

Long-Term Cost Reduction
“These new products have been given an excellent reception in the U.S.A. and Sweden, and initial sales have surpassed our forecasts. In recent years, Nobel Biocare has effectively streamlined the development of new products and realized its target of ensuring that 30% of sales are generated by products launched during the past three years. Product development focuses on simplifying and shortening treatment for dentists and bringing about a long-term reduction in the cost to the patient in order to increase the use of dental implants,” says Jack Forsgren, president of Nobel Biocare AB.

Fixture sales account for a large part of Nobel Biocare’s total sales. Nobel Biocare has a 40% share of the world market — following the successful acquisition of the leading U.S. implant company Steri-Oss. The total market value of dental implants is around US$ 500 million and the market is expected to grow by some 10% this year.



Cool & efficient gas turbines
Munters' HumiCool is now precooling gas turbines for the Lalaeloa Cogeneration Plant (KCP) in Kapolei, Hawaii.
The KCP is a combined-cycle combustion turbine plant located at the island of Oahu. The plant converts chemical energy from fuel into electrical and heat energy. KCP generates about 20% of the electricity for the Island of Oahu.

Lots of Air
In 1997, KCP decided to examine the plants system design to determine what capital upgrades could be implemented to increase plant output and efficiency. They found that an evaporative cooling system was one such upgrade that could do just that.

Large amounts of air are required to operate gas turbines, which means that the power output and fuel consumption of a gas turbine gererator is highly dependent upon mass flow and quality, as well as the ambient temperature of the air drawn into the combustion chamber.

Wet and Cooler
In evaporative cooling, intake air is passed through one or more wet pads to simultaneously absorb humidity and cool the air. The cool, humid air is then directed to the area where it is needed. Munters' TURBOdek system cools the inlet air, creating denser air and giving gas turbines a higher mass flow rate and pressure ratio, which results in an increase in power output and efficiency.

"Munters' TURBOdek evaporative cooling system optimizes the gas turbine combustion process by increasing oxygen levels," says Larry Klekar, sales manager for Munters Systems Division in Region Americas. "It is possible to recover as much as 15% of the lost power just by cooling the intake air."



Joint venture for Networked Homes
Electrolux and Ericsson announce the establishment of a jointly owned company for development and marketing of products and services for the Networked Home. The company will define a complete user-friendly "Plug and Use" infrastructure, making household appliances networked and connected to external providers of information and services over the Internet.
The new joint venture is a result of the strong commitment by both Electrolux and Ericsson to the future of the Networked Home. Household appliances will increasingly become networked and be connected to external service and content providers via the Internet. As an example, ordering of every day supplies, such as groceries, will be done from an easy to use touch screen in the kitchen, having Internet access via a service gateway for the entire home.

Networked appliances represent a huge future market potential. The business is expected to take off when the industry is able to offer intelligent, easy-to-use appliances with embedded microprocessors and communication modules. In addition, the existence of a Networked Home creates a substantial market for delivery of new types of electronic services "e-services" to the households.

Meet HAL the talking refrigerator
"We want to make people's life more convenient and enjoyable by combining household appliances and the resources of the Internet," says Michael Treschow, the CEO and president of Electrolux. "When consumers walk through the door of an Electrolux retailer in the future, they will find appliances that can communicate with them, with other appliances, and with the outside world through the Internet."

Large amounts of air are required to operate gas turbines, which means that the power output and fuel consumption of a gas turbine gererator is highly dependent upon mass flow and quality, as well as the ambient temperature of the air drawn into the combustion chamber.

The new company will act as a catalyst for a variety of electronic household services through the establishment of partnerships between the traditional Electrolux retail channels, service providers and network operators. For example, when selling a new freezer the retail channel will also be able to bundle on-line supervision of temperature and preventive maintenance in the offering.

In addition to the investments already made by Electrolux and Ericsson in development of the Networked Home, they will together, as a first step, invest US$ 8.54 million in the new company. The new company will immediately participate in a joint project with TeleDanmark. The joint venture company will be striving for an open network and service architecture, and will take actively part in standardisation of the Networked Home. The 50/50 owned joint venture will be operational in October 1999 and is located in Stockholm, Sweden. Products from the new company are expected within a year.



Swedish WAP expertise for export
Information Highway is the first Swedish Consultant Corporation to be chosen as a member of the WAP Forum. The Forum is an international organization that was started by one of the worldÕs leading telecom companies in order to create a global standard for WAP technology.
WAP (Wireless Application Protocol) is a method that makes it possible to receive Internet-based information in your cellular telephone as well as in other cellular devices. Experts predict that WAP technology will become the next great global standard for new generation cellular telephones and services. The first WAP-enabled telephones are expected to appear this fall. The technique gives users from around the world, the ability of receiving information and services in a user-friendly way, even if they use different equipment. However, this means that all of the players must utilize the same standard language.

In order to realize this, several large corporations took the initiative of starting a WAP-Forum, an international organization and discussions forum for the development of WAP. Members expect to contribute to the development of the technology with the goal of creating a global standard. Information Highway has now been chosen as the first Scandinavian Consultant Corporation to become part of this organization.

Ericsson Calls for Help
Ericsson has also turned for help from Information Highway, in order to identify the market possibilities in the development and sales of WAP-related services, as well as to analyze how WAP can support future cellular e-commerce solutions.



Contract for platform work
Elf Petroleum Norge has awarded Aker Offshore Partner a frame contract for project and operations assistance on the Frigg and FrØy platforms in the Norwegian North Sea. The contract, which is worth around NOK 250 million, runs for three years with options.
Under the contract the Aker Maritime companies Aker Offshore Partner and Aker Elektro will perform maintenance on the platforms and, as the Frigg and FrØy fields near the end of their productive life, prepare them to be closed down. A small number of Elf employees who are specialized in the work involved will transfer to Aker Maritime.

Significant Share
Elf and Aker Offshore Partner will work closely together in implementing the contract. The market for platform operations and maintenance constitutes a significant part of Aker Maritime's activities, and the agreement with Elf will strengthen the company's knowledge of working with fields in the terminal phase.



Scania's Norwegian takeover
Scania's acquisition of Norsk Scania AS has today been completed. The take-over is in line with Scania's strategy of strengthening and developing its European distribution and service network. Mr. Jaap Bergema has been appointed Managing Director.
Norsk Scania AS reported sales of NOK 1.5 billion last year. Scania's takeover includes the company's close to 40 sales and service outlets employing about 850 people. The head office is located in Oslo, the capital of Norway.

Trucks and Buses
Almost 1,000 Scania trucks and about 60 buses were registered in the Norwegian market in 1998, equivalent to market shares of 33% and 12%, respectively. With sales of close to 400 units, Norway was also ScaniaÕs third biggest market for industrial and marine engines.

Scania has a long tradition in the Norwegian market. The company delivered its first vehicle to Norway in 1916, and has sold about 29,000 trucks, 6,000 buses and 8,000 industrial and marine engines in the country to date.



SCA acquires U.K. tissue company
SCA has acquired all the shares in the British tissue company AM Paper Group Ltd for GBP 192 million (SEK 2.55 billion) on a debt-free basis.
AM Paper has expanded sharply in recent years. In 1999, the company started up a new machine for production of tissue using so-called TAD technology, that is, with a production focused on the highest product quality. AM PaperÕs share of the British consumer tissue market is 14%. As a result of the acquisition, SCAÕs combined market share in the consumer sector in Great Britain has been doubled, amounting to 28%.

AM Paper is the U.K.'s second-largest supplier of tissue for the private label market, a part of the market where SCA, until now, has been relatively underrepresented. After the acquisition, SCA's market share in the private label segment stands at 30%. Production within AM Paper is based on TAD as well as conventional technology. Total machine capacity amounts to 60,000 metric tons annually, 30,000 of which is TAD. Converting capacity amounts to 100,000 metric tons a year. The number of employees is about 600.

Growth Planned in Hygiene
The acquisition is part of SCA's strategic growth plan for Europe in the hygiene segment, which is aimed at the Group's becoming a leading supplier of brand-name products as well as private-label products with a total market share of at least 20%. SCA's product portfolio in Great Britain currently comprises Velvet bathroom tissue, Wipe & Clean household towels, Tork tissue for bulk consumers, Up & Go baby diapers and private-label baby diapers, Bodyform feminine hygiene products, and Tena incontinence products. The acquisition is to give SCA a new presence in the facial tissue market. SCA's and AM Paper's total sales of hygiene products in Great Britain are projected to amount in the year 2000 to nearly SEK 5 billion.



Volvo Truck Order to Malaysia
Federal Auto Industries, the Volvo Truck importer in Malaysia has received an order for 110 tractor units of the type FM10 6X2 from Kontena National.
Kontena National is the premier container transport company in Malaysia and operates some 400 Volvo trucks, which represents 70 per cent of their fleet.

The agreement covers a phased delivery of 110 units during the later part of 1999 and a six year Contract Maintenance agreement with the Volvo dealer network throughout Malaysia. An option for another 80 units to be taken up during the early part of year 2000 is also included in the agreement.

Assembled in Malaysia
The CKD units will be assembled in the Swedish Motor Assembly factory in Sha Alam Malaysia. Some components will be supplied locally.

"Kontena National is a high profile, well-managed company and this prestigous order confirms the confidence that Kontena National has in the Volvo FM truck, which represents leading edge-technology and productivity,ensuring maximum customer competiveness. This is a fantastic kick-off for the new FM truck, which is due to be introduced to the Malaysian market," said Mr. Norman McIlwraith, Managing Director of Volvo East Asia – Trucks.



Bridge connects Sweden & Denmark
The 16 km long Öresund link between Sweden and Denmark is now complete. At 6 a.m. on August 14, the final section of the Öresund bridge was placed in position by a gigantic floating crane. Six hours later, Crown Princess Victoria of Sweden and Crown Prince Frederik of Denmark met on the bridge to mark the fact that Denmark and Sweden are again linked–7,000 years after the Ice Age.
Saturday's topping-out ceremony marks the culmination of 46 months of construction work, which started in October 1995 with the dredging for the peninsula at Kastrup, the tunnel trench, and the artificial island of Peberholm. In December 1996, the first segment for the immersed tunnel was cast at Copenhagen North Harbor. And, in July 1997, the first bridge pier was placed in position at the abutment at Lernacken, south of Malmö.

Open for Traffic July 2000
The Öresund Fixed Link will open to traffic on July 1, 2000–approximately nine years after the Danish and Swedish governments signed the agreement for the construction of the link in March 1991. Over the next 11 months, the remaining work will center on tracklaying, electrical installations, the toll station, and the Link Control Center at the abutment at Lernacken. The entire link will also be subject to a series of tests.



Maureen platform refloat
Phillips Petroleum Company United Kingdom Limited (Phillips) has selected Aker Maritime as the contractor to undertake the refloat of its Maureen Alpha oil production platform in the UK sector of the North Sea.
Phillips Petroleum Company United Kingdom Limited (Phillips) has selected Aker Maritime as the contractor to undertake the refloat of its Maureen Alpha oil production platform in the UK sector of the North Sea. The work, which will be executed by Aker Maritime subsidiaries Aker Marine Contractors and Aker Offshore Partner, includes refloat of the steel-gravity-based platform and its articulated loading column. The value of the contract is in excess of NOK 500 million and includes detailed engineering and marine operations.

Done It Before
Aker Marine Contractors' experience with marine operations, and the transportation and installation of more than a dozen gravity-based structures has been instrumental in the development of the method for refloat of the platform. Aker Maritime has teamed up with several subcontractors for the work, including Coflexip Stena Offshore for subsea work. The Maureen Alpha platform consists of a 92,000 tonne steel-gravity-based structure and an 18,000 tonne topside. It was installed in 1983.



Healthcare Tamro expands in Russia
Tamro, a leading healthcare distributor in Northern Europe, continues its expansion in Northwest Russia. The Murmansk branch office started operations in June. At the same time, Tamro's business in Russia is gaining back its 'pre-crisis' volumes.
Tamro, a leading healthcare distributor in Northern Europe, continues its expansion in Northwest Russia. The Murmansk branch office started operations in June. At the same time, Tamro's business in Russia is gaining back its 'pre-crisis' volumes. The Murmansk branch office follows Tamro's expansion strategy in Northwest Russia after the branches in Petrozavodsk and Archangelsk and the sales office in Novgorod. Target is to bring high service level and high quality products near the customers and thus strengthen Tamro's key competitive edges in the Russian market.

Back to the Future in Russia
Tamro established its joint-venture company Pharm Tamda 77 in St. Petersburg in 1994. The company celebrated its fifth anniversary at the beginning of June in Peterhof with hundreds of customers, authorities, and suppliers participating. The general atmosphere favored the view that the pharmaceutical trade is gaining back momentum in 'post-crisis' Russia.

"Tarmo will continue its investements according to its strategy in Northwest Russia through our joint-venture company," says Mr. Jorma Kajaste, Vice President, Tamro Distribution Russia. The present trend in Tamro's business in Russia looks satisfactory. The business after the Ruble Crisis of August 1998, is gaining back the sales volumes of a year ago.



Another order for Haldex AWD
Haldex AB in Sweden has received another order from a European high performance sports car manufacturer for a prototype installation of the AWD system.
Haldex AB in Sweden has received another order from a European high performance sports car manufacturer for a prototype installation of the AWD system. The application, in this case, is a rear-wheel-drive vehicle. The prototype will be installed during August/September this year for high performance test driving during the fall. The tests will continue during the winter season in northern Sweden.

If the tests are successful, an order is expected for the system with a planned production start during period 2000Ð2001.

Haldex Rules
Whereas the potential volumes in this case will be quite limited, the prototype order confirms the advantages of Haldex AWD system over similar systems and reconfirms our experience and know-how related to the special requirements and conditions for high performance cars. The Haldex AWD system has been successfully used by Kenneth Hansen, a European Rally Cross Champion, for several years. The tough rally driving–frequent changes between gravel and asphalt in combination with high (510 bhp) engine power experiencing accelerations from 0 to 100 km/h in less than 2.5 seconds–have provided excellent test conditions during the development stage of the Haldex AWD system.

This rear-wheel-drive application will expand the range of the Haldex AWD system, and it proves the flexibility of its control capacity for any other kind of installation.



Tanker fleet expanded
The second newbuilding for the Swedish tanker shipping company N&T Argonaut was delivered in June. During the early part of 1999, NTA has thus taken delivery of the two 158,000-dwt tankers, the M/T Nord Hope and M/T Nord Horn, both of which were built at the Daewoo Shipyard in South Korea.
The vessels are Suezmax-sized oil tankers, built according to the latest specifications and with modern technology such as double hulls and state-of-the-art computerized equipment for navigation, engine operation, and cargo handling. As with the cargo tanks, all the fuel tanks are protected by double hulls, that is, both the bottom and sides of the vessels' hulls are double, with a space of 2 to 3 meters between the outer and inner hulls.

"In addition to hull safety, we've also chosen to enhance the vessel's environmental protection systems to ensure safer operation and work," says Anders Berg, NTA's President and CEO.

The vessels each have a total length of 274 meters, a beam of 48 meters and a maximum draft of 17 meters. Fully loaded, their speed will be 15.2 knots

A Fleet of 18
Today NTA thus has a fleet consisting of 18 tanks, adding up to a total of 3,617,000 dead weight tonnes. The fleet includes one Ultra Large Crude Carrier (ULCC), seven Very Large Crude Carriers (VLCCs), five Suezmax and five Aframax vessels.

Early next year, an additional newbuilding is scheduled for delivery to NTA: a 300,000-dwt crude-oil tanker in the VLCC-sized category.



Nokia to upgrade GSM in Taiwan
Nokia and KG Telecom, a leading operator in Taiwan, have signed an agreement worth over USD 100 million for the supply of GSM equipment. The expansion also includes delivery of the first delivery of GPRS solution in Asia.
Under this agreement, Nokia will supply GSM network infrastructure equipment and cellular transmission equipment to KG Telecom, including Nokia mobile switching centers, base stations and base-station controllers. Nokia will also provide Intelligent Network (IN) solutions, for advanced value-added services throughout Taiwan. In addition, the Nokia Network Management System and a range of customer services will be supplied, covering implementation and technical support.

Finnish Cellular Solutions
"Our customers will now benefit from wider network coverage as well as an expanded range of the latest value-added services that are available through the Nokia IN solutions and later through GPRS," says Mr. Jimmy Yau, President & COO, KG Telecom. "This latest investment will allow us to increase capacity and, at the same time, incorporate the most advanced cellular technology currently available into our system."

"Nokia is pleased to contribute to the success of the KG Telecom network. The number of mobile subscribers in Taiwan is already over four million, and we anticipate this figure to at least double by 2001 given the current growth rate," says Kari Ahola, Senior Vice President, South East Asia & Pacific, Nokia Telecommunications. "Nokia's vision of the mobile becoming the preferred phone is being realized. With the increasing demand for advanced voice and data services in GSM networks, Nokia is pleased to support KG Telecom in meeting these consumer needs with this new agreement."

Leading Mobile Supplier
Nokia is the world's leading mobile phone supplier and a leading supplier of mobile and fixed telecom networks including related customer services. Nokia also supplies solutions and products for fixed and wireless datacom, as well as multimedia terminals and computer monitors. In 1998, net sales totaled FIM 79.2 billion (USD 15.7 billion, EUR 13.3 billion). Headquartered in Finland, Nokia is listed on five European Stock Exchanges and on the New York Stock Exchange (NOK.A), has sales in over 130 countries and employs more than 44,000 people worldwide.



Skanska gets Finnish office building deal
Skanska Oy has signed a contract for the design and construction of a new office building for Sonera, Finland's leading telecommunications company, in Helsinki.
Skanska Oy has signed a contract for the design and construction of a new office building for Sonera, Finland's leading telecommunications company, in Helsinki. The value of the contract won by Skanska is approximately FIM 105 million, about US$ 21 million. The project has a group of investors based from the OKOBANK Group, which acquired the site from Polar Corporation. The latter has acted as the developer of the project. Construction will start immediately. And the project is scheduled for completion in May of the year 2000.

The building will house offices for 430 people, with corresponding conference rooms, support facilities, and personnel restaurant.



Kenor drills in nothern Norway
Scanor Mining has decided to start drilling for gold in Pasvikdalen, in northern Norway, during the upcoming summer. KENOR and the Swedish company ScanMining AB share the ownership of Scanor Mining.
"The exhaustive geochemical exploration, realized in 1998, has given positive results. We have therefore decided to start the first phase of drilling in the area of Gjedde Lake," says Peter Kuiper, the head of the project.

Gold mineralization has already been located in this area. This resulted in the joint venture of Scanor Mining in order to continue the prospecting work.

'Gold in Them Hills'
"Scanor conducted an extensive sampling program during 1998, and this has indicated that the gold mineralization covers a considerably larger area than the previously defined zone. Moreover, we've found new areas with well-defined gold anomalies in Pasvikdalen," says Mr. Kuiper.

The work starts now in April with Cobra-drilling, using snowscooters as the means of transportation. "Further drilling requires an area free of snow. We expect to begin bedrock drilling in July," concludes Peter Kuiper.

Gjedde Lake, Norway
In 1993 Victor Melezhik of NGU (Norwegian Geological Survey) discovered an outcrop with gold up to 10 ppm in the Pasvik Valley in Finnmark, Norway. The gold was found as dissemination in sulfide-bearing quartzites with associated quartz-arsenopyrite-carbonate veins along the shore of the informally named Gjedde Lake.

KENOR ASA claimed the area and contracted geologists from Geocare AS to conduct geological reconnaissance and sampling, and NGU to conduct geophysical investigations.



World's biggest Aframax tanker fleet
The Board of Directors of Bona have announced that Bona has reached an agreement with the Teekay Shipping Corporation (Teekay) in which Bona will amalgamate with a wholly-owned subsidiary of Teekay. The proposed transaction will create the world's largest Aframax tanker fleet. The amalgamation has been recommended by the Board of Bona and approved by the Board of Teekay.
he Teekay Shipping Corporation owns and manages the worldÕs largest and one of the most modern fleet of medium-sized tankers. Founded in 1973, Teekay has established a reputation for excellence as a provider of quality transportation services to the oil industry.

"Bona and Teekay are highly complementary companies with similar philosophies and values. The professionalism of Bona's staff is well recognized in the industry and our company will contribute significantly to the enlarged group," comments Ragnar Belck-Olsen, President of Bona.

Bigger Group–More Service
The global oil industry is experiencing accelerating consolidation. Consequently, tanker companies are serving fewer but significantly larger customers that are increasingly demanding their shipping partners to provide more flexible services on a global basis.

The proposed transaction will create a group that will offer an unparalleled level of service to oil companies. It will create a combined entity with 76 vessels and more than 3,000 onshore and seagoing employees. By expanding in terms of both fleet and geographic presence, the enlarged group will benefit from economies of scale. It will also provide a more efficient and truly global operating platform. Customers of the enlarged group will benefit from standardized worldwide operations, common technologies, fleet flexibility, and increased purchasing power for spare parts and maintenance services.

Transaction Process
The transaction requires approval by a 75% majority of Bona's shareholders at an Extraordinary General Meeting to be held as soon as practicable. The transaction is expected to be completed before the end of June.

The transaction will not be registered with the Securities Exchange Commission and accordingly, Bona shareholders who are U.S. residents will not be entitled to elect to receive share consideration. The Teekay shares are listed on the New York Stock Exchange, and will not be listed on the Oslo Stock Exchange.



New Research Center opened
Stora Enso's new Research Center in Karlstad, Sweden, was officially opened on 6 May, 1999. The new unit is situated close to the University of Karlstad, which specializes in research related to the forest industry. Valmet Corporation also has a new R&D facility in Karlstad.
Speaking at the opening ceremony, Mr. Yngve Stade, Senior Executive Vice President, Corporate Support, said, "This new center of knowledge in Karlstad provides a unique meeting place for the academic world as well as for machinery and systems suppliers, manufacturers and customers."

Stora Enso's R&D work focuses strongly on product-related research. Stora Enso Research employs roughly 400 people in Karlstad and Falun in Sweden, Imatra in Finland and Viersen in Germany. Some 140 of these work in Karlstad, where the emphasis will be on pulp research, materials testing, and chemical analysis.

Experimental Workshop
In conjunction with the new facility is Stora Enso Tech–an experimental workshop intended mainly for young students. Here, young people will be able to conduct their own experiments and in this way gain practical knowledge of the forest industry.

The Karlstad Research Center was officially opened by County Governor Ingemar Eliasson in a ceremony jointly arranged with the University of Karlstad and Valmet. The University's center of expertise in surface coating, which seeks to encourage paper coating research, and Valmet's renovated and expanded Technology Center, were also officially opened at the ceremony.



Swedes choose their favourite building
It is not only tourists and Nobel laureates who admire Stockholm City Hall. In an opinion poll sponsored by Skanska, the Swedish people chose Stockholm City Hall as the most beautiful building in Sweden.
"For those of us who are literally building the new Sweden, it is important to know the kind of architecture that appeals to Swedes," says Per-Ingemar Persson, manager of Skanska Sweden. "This will help us when we are building new areas, because we want those living or working there to find them attractive."

The opinion poll company Gallup carried out the telephone survey on behalf of Skanska by questioning a statistically representative group of Swedes. More than 1,000 Swedes were asked what building they consider to be SwedenÕs most beautiful. In addition to the City Hall and Stockholm Castle, many churches received a high number of votes

One structure that did surprise many by taking a top ten position was the new High Coast Bridge. "As the company that built the bridge, this makes us very proud," says Per-Ingemar Persson. "It is the only structure on the list that is not a building, and it is the youngest of all the structures included in the survey."

Male Eye for an Eye Sore
It was shown in the survey that people living in large cities and those in the country think differently and that there is also a difference in what men and women consider beautiful.

More men, for example, chose Globen in Stockholm, while women tended to focus on the historical or cultural buildings such as The Royal Castle or the City Hall in Stockholm.

"For us as a construction company, it is important to find out the cause of these differences and how they may be overcome," says Per-Ingemar Persson. "This is the only way we can build apartments, offices, bridges, and other structures that will blend with and will be appreciated by society as a whole."

Old But Beautiful
At the same time as the Swedish survey was carried out, Skanska had the same question put to a sample of the American public. The Empire State Building took first place, closely followed by people's own homes and the White House.



AGA and Outokumpu sign new agreement
AGA AB has signed a new long-term gas supply agreement with the Finnish Outokumpu Group. The agreement is worth USD 250 million. As a part of the agreement, AGA acquires Outokumpu's production plants for air gases and hydrogen.
"The agreement strengthens our position in one of our most important key markets and will, from the start, have a positive effect on our result. It optimizes our supply structure," says Leif Svensson, the head of AGA's Process Industry business area. He sees great opportunities in the increased cooperation with Finnish Outokumpu, one of the leading companies in the area of stainless steel, copper, nickel, and zinc production.

Finnish Expertise in Metallurgy
Finnish Expertise in Metallurgy "For us, this cooperation with AGA is of very high value, especially since AGA can secure our requirements for air gases for a long time. The agreement also makes it possible for us to concentrate on our core competencies in metallurgy," says Asko Parviainen, the president of Outokumpu Harjavalta Metals Oy.



Volvo gets top ratings in U.S.A.
The success story for VolvoÕs heavy-duty trucks in the VN Series continues. They are receiving top ratings from customers, and sales are exceeding all expectations.
Since the Volvo VN was introduced in September 1996, customers in the U.S.A. and Canada have signed orders for more than 40,000 trucksÑfar more than anticipated. As a result, Volvo's share of the market for trucks weighing more than 15 tonnes has improved in both countries during the past year. In October 1998, Volvo was the fourth largest truck make in the United States, with a market share of 11.8%, 2.4 percentage points more than October 1997. In Canada, Volvo advanced from sixth to third place between August 1997 and August 1998. Volvo's market share in Canada improved from 9.0% to 12.8%.

Volvo VN ranked first in major survey The popularity of the Volvo VN among customers has been confirmed by a recent independent survey in which some 800 U.S. truck owners were asked to rank their trucks. The survey involved the three most popular truck makes in the States (Class 8: the Volvo VN, the Freightliner Century Class, and the Kenworth T2000), all of which were introduced in 1996 or later.

Ranking 10 Out of 10
The Volvo VN was ranked as being by far the best of the three makes. Eight out of ten Volvo VN owners were satisfied or very satisfied with their trucks. One third of them gave the VN 10 out of 10. None of the rival makes came anywhere close to figures of this kind. The Volvo VN was rated best in its class in terms of comfort, safety, exterior and interior design, and storage space. Nine of out ten VN owners said that they would recommend the Volvo VN to other customers.

"An extremely pleasing result," says Karl-Erling Trogen, the president of Volvo Trucks. "Being ranked number one by what are perhaps the worlds most demanding truck customers is the best recommendation we could hope for. The fact that we are simultaneously strengthening our position on the market proves that our long-term commitment to North America is now very definitely starting to pay off."

"The 1998 Class-8 Heavy Truck Customer Satisfaction Study" was conducted between 26 May and 3 August by the Louis Harris & Associates consulting company.



Skanska to Russia for $32 million
Skanska has won an order in Russia for US$32 million, covering construction of new production, warehouse, and technical facilities for the Philip Morris Izhora tobacco factory in the Leningrad region.
Skanska will construct the foundation and framework and add the facade and roofing for the 70,000 sq.m. buildings. Work, which has already begun at the site in the Lomonosov district near the international airport, will employ 500 persons at its peak. Construction is estimated to take a year. Cigarette production will be under way by 2000.

Currently, Skanska's projects in Russia include Russia's first IKEA department store in Moscow and a razor-blade factory for American Gillette at St. Petersburg

Skanska is also constructing a chewing gum plant for the Danish company Dandy at Novgorod.



New Ore Train locomotives
LKAB has reached an agreement with Adtranz to supply nine ore-train locomotives for the Ore Line in northern Sweden. The order also includes an agreement to supply spare parts for a period of 10 years from the start of traffic. The order follows upon an LKAB board decision of June this year to invest SEK 1.1 kronor in new rolling stock.
The first prototype engine, which is to be delivered in August 2000, will undergo extensive trials during a one-year period. Delivery of the other eight locomotives is expected to take place during the period 2002-2004.

Weighing in at 300 Metric Tons
The new ore train locomotives are to be operated by LKAB subsidiaries MTAB and MTAS. Each will have a total weight of 360 metric tons with ballast and an axle pressure of 30 metric tons. If the ballast is removed, the total weight is 300 metric tons and the axle pressure is 25 metric tons. It is possible that six of the locomotives will be of the latter version. Each unit consists of a pair of six-axle locomotives with triple-axle radial-steering bogies. Control cabins are located in one end of each locomotive section. Both sections are identical and will therefore function as autonomous units.

Additional data:
Length: 45.8m (2 x 22.9m)
Power rating: 10,800kW
Tractive effort: 1,200kN
Max. speed: 80km/hr

Made in Sweden
The new ore-train locomotives are to be equipped with asynchronous motors, which will facilitate electric braking with regeneration, as well as an adhesion control system that monitors adhesion and prevents wheel-locking. The locomotives also feature an information and diagnostics system for service and maintenance support. In addition, the order also entails an LCC commitment (Life Cycle Cost), which means that Adtranz guarantees that operating costs will not exceed a specified maximum level.

Final assembly of the new locomotives will be carried out at the Adtranz manufacturing plant in Västerås.



SCA goes for hygiene growth
SCA's Board of Directors has approved a number of acquisitions within the hygiene products area totaling about SEK 1 billion. All the projects are in line with the previously announced growth strategy for the GroupÕs hygiene segment.

Brazil is New SCA Market
In Brazil, SCA is participating in the new issue of shares in the Melhoramentos Papeis Ltda (MP) tissue company, whereby SCA is acquiring a 50% interest in the company. Currently, MP has a capacity of about 60,000 metric tons of tissue and annual sales amount to approximately SEK 900 million. The market share is about 10%. Measures to increase capacity on existing machines and investment in converting equipment will be implemented to increase the capacity to approximately 115,000 metric tons. With MP as a base, further opportunities will be created to introduce incontinence and feminine hygiene products on the Brazilian market. The transaction is expected to be completed by the end of 1998.

Strengthened Position on the Andean Market
In Colombia, where in 1997 SCA acquired 20% of the shares in the Productos Familia S.A. tissue company, SCA is now successively increasing its holding to 50%. The company's sales have developed very favorably during the past year. After SCA acquired an interest, the company purchased Tecnopapel, one of the two tissue companies in Ecuador. Previously, SCA was already engaged in a 50-50 joint venture with Productos Familia in the fluff segment.

Expanded Involvement in Asia
In the Philippines, all shares in the Holland Pacific Paper Inc. (HPPI) tissue company were acquired. Capacity is currently 22,000 metric tons of tissue and 8,000 metric tons of specialty papers. The specialty paper machine can be converted to tissue production. Sales amount to approximately SEK 75 million annually and the market share is about 22%. SCA is also involved in joint ventures in Japan, Taiwan, and Australia.

Financing through Cash Flow
All the acquisitions well meet SCA's return requirements in the various regions (about 20%). It is expected that financing will be carried out within the framework of SCAÕs 1998 cash flow from operations.



Leading newsprint created in Asia
Norske Skog has announced that the Board of Directors of Norske Skog, Abitibi-Consolidated of Canada, and the Hansol Paper Co. of Korea have approved a transaction creating the leading newsprint and groundwood paper company in the Asian-Pacific region. The transaction is expected to close during the autumn of 1998.
Each company will purchase a one-third stake in the joint-venture that will encompass the Asian-Pacific groundwood paper operations and sales of the three parties. The joint venture, tentatively named Pan-Asia Paper Co. (PAPCO), will purchase Hansol's Korean and Chinese newsprint businesses as well as Norske Skog's newsprint operations in Korea and Thailand.

The joint-venture will purchase Hansol's Korean and Chinese newsprint businesses as well as Norske Skog's newsprint businesses in Korea and Thailand. The mills will be run through their own subsidiaries in Korea, Thailand and China.

Selling Worldwide
The new company will market all paper sold in the Asia-Pacific region, including paper from Norske Skog and Abitibi-Consolidated. Norske Skog will sell any of the joint ventures tonnes exported to Europe, the Middle East, and the African countries, while Abitibi-Consolidated will sell any of the joint ventureÕs tonnes exported to the Americas.

Norske Skog is a leading European manufacturer of newsprint and magazine paper. Based in Norway, the group has eight mills in Norway, France, Austria,the Czech Republic, and Thailand, selling product into more than 50 countries. The groupÕs strategy is to become a global player in the publication industry.

Abitibi-Consolidated is the worldÕs largest manufacturerer and global marketer of newsprint and a leader in uncoated groundwood papers, with 18 mills throughout North America and the U.K., selling product into 50 countries on all continents, the company's vision is to be the world's preferred marketer and manufacturer of papers for communication.

Power Position for Chinese Market
Hansol Paper is the second largest paper manufacturer in non-Japan Asia with an annual production of 2.3 million tonnes of newsprint, woodfree paper, and white duplex board. Hansol Paper has four mills in Korea and one mill in China, and exports more than 40 % of its production outside of Korea. Offshore joint venture investment is one of the most important strategies for its continued growth, utilizing its power strategic position in the China market.



Joint venture in Asian Pacific region
Norske Skog, Abitibi-Consolidated Inc., and Hansol Paper Co., Ltd., today announced that they have signed a letter of intent to enter into a joint venture to create the leading newsprint and groundwood company in the Asian Pacific region. The joint venture will combine the best assets and operating management in the region with the largest exporters.
The joint venture will own 100 % of the Hansol Chonju mill in Korea, with annual capacity of 1,040,000 tonnes, as well as Hansol's 53-per-cent ownership in Shanghai Hansol Potential Co., Ltd., a newsprint joint venture in China (capacity: 130,000 tonnes). Norske Skog is in the process of closing the acquisition of Shinho's newsprint mills in Korea and Thailand [see article below], which have a combined capacity of 300,000 tonnes. These four mills would have a combined annual production capacity of nearly 1.5 million tonnes–an 18-per-cent market share in the Asian Pacific region and a 40-per-cent market share in non-Japan Asia.

Aiming for Largest Operation
The objective of these transactions is to create the largest newsprint operation in Asia outside Japan. The joint venture will be comprised of blue-chip, extremely modern, low-cost assets in a long-term growth region. The average age of the newsprint machines will be only five years.

The net proceeds to Hansol will be used in its overall restructuring plan, which was undertaken by Hansol in reaction to the current financial situation in Korea.



Norske Skog Flooring builds in U.S.
Norske Skog Flooring is presently investing NOK 200 million in a new plant for the production of its glue-free laminated flooring, Alloc. The plant is to be built at Racine, Wisconsin, and will have two production lines.
The first line to be built at Racine will be in production by the fall of 1999, and the other line will be finished the following year. When fully completed the plant will have a capacity of three million square meters a year.

Planned to the Penny
"This investment is a very important one for Norske Skog Flooring. The project shows good profitability, and it will speed up the company's development into a major player on the international market,"says Bengt Rasin, the managing director of Norske Skog Flooring.

Alloc flooring was launched in the United States at the new year, and sales are already running well over budgeted levels. Until the Wisconsin plant is ready for production, the American market will be supplied by Norske Skog Flooring's plant at Lyngdal [Norway], which could face capacity problems as early as the start of 1999. The Lyngdal plant will continue supplying the American market, even after the new plant is in operation.

Buying by the Billions
The American market is the largest for flooring in the world, consuming over two billion square meters. Of that, laminated flooring this year will account for 15 million square feet. This latter market has been growing at the rate of about 40 % a year since the productÕs introduction in 1993. And, laminated flooring is by far the fastest growing flooring product.

Americans Demand Service
In the United States, high standards of service and supply capacity are demanded. This requires immediate proximity to the marketÑsomething that excludes long-term servicing from Europe. In consequence, several big players have established their own production lines in the market. The significant costs involved in shipping from Europe– freigth charges and import duties–are another important competitive argument.

The decision to build a new plant in the United States is the result of a two-year study that covered localization, plant design, production technology, and the labor market.

Norske Skog Flooring AS is one of the leading producers of flooring in Scandinavia. The company is wholly owned by Norske Skog. It makes Langmoen parquet flooring and Alloc laminated flooring at Brumunddal and Lyngdal. It has an annual turnover of about NOK 600 million and just over 500 employees.



Norske Skog/Statkraft power deal
Norske Skog and Statkraft, Norway's state-owned generating utility, have concluded a long-term power supply agreement. The agreement has been negotiated on commercial terms, and will help ensure that most of Norske Skog's power needs will be covered until the year 2020.

The power supply agreement is one of the largest ever concluded in Norway. Deliveries will start in the year 2002 and will gradually be stepped up, as Norske Skog's present agreements expire, to reach a total of 4 TWh annually, with full offtake, from 2011.
"With this deal, Norske Skog has in place one of the most important prerequisites for the long term profitable production of paper and pulp in Norway," says Jan Rein¬s, Norske Skog CEO.

"We are satisfied to have reached an agreement with Norske Skog, after lengthy negotations," reports Lars Uno Thulin, Statkraft managing director "Statkraft wants the process industry among its customers. This agreement lays the foundation for a professional customer-supplier relationship that will mutually benefit both parties."

Cogeneration Plant Planned
The agreement with Statkraft secures for us most of the power we need to operate today's activity in Norway. However, to secure power for further development, Norske Skog is going ahead with the Industrikraft Midt-Norge project, in which Elkem, Statoil, and Norske Skog have joined forces with a view to building a cogeneration plant at Skogn. "This is a very sound industrial project, which also provides favorable conditions for future industrial development in the region. In addition to the power, Norske Skog is particularly interested in the thermal energy that the cogeneration plant will provide," says Jan Reins.



Finns fuse with Swedish Stora
Two of Europe's biggest forestry companies are to merge into the world's biggest pulp and paper company-even bigger than International Paper in the U.S.A. This news was splashed today across the front pages of most Scandinavian papers. The new headquarters for the giant group with 40,000 employees will be in Helsinki.
Enso Oy, the big Finnish forestry group, and Stora AB, the big pulp and paper manufacturer in Sweden, are to become the largest manufacturer of paper and board in the world. The new giant corporate group, with an expected annual production of 12,000 tonnes, will surpass International Paper of the U.S.A. "Stora Enso" will command a leading position in most grades of paper, particularly in LWC (coated magazine grade).

Through Enso to EMU
The logic of this bold fusion is that Enso will extend its exposure in emerging markets through Stora's existing alliances. Stora, on the other hand, will be able to exploit Enso's domicile in a Euro-member country to reduce its transaction and invoicing costs. According to Björn Hägglund, the managing director of Stora, this will also provide a way for Stora to enter the EMU, which Sweden has decided not to join [for the duration].