PRESS RELEASE
June 1, 1995
Kährs, the Swedish company popular for its parquet and wooden floors, is investing 300 million SEK in production and environment.

The Nybro company AB Gustaf Kährs continues its successes on the European market. The group is now investing ca. 300 million SEK in Sweden. Close on 225 million SEK is being invested in the Nybro works and the company's flooring works in Ljusdal. 75 million SEK is being invested in Blomstermåla Fanér AB, thereby guaranteeing the survival of the veneer company after a considerable number of difficult years. In total Kährs will take on 300 new staff of which 200 will be in Nybro, 50 in Ljusdal and 50 in Blomstermåla.

The parquet and wooden flooring market in Europe - especially central Europe - and in North America has grown considerably during recent years.
'Throughout the eighties we experienced a growing demand for our products and that growth in demand has increased still further during the nineties,' says Ola Wilhelmsson, Kährs' Managing Director and Group Manager. 'Sales in Europe and North America are rising sharply and there is currently a shortage of high-quality parquet flooring.'

Total environment
'The market for parquet and wooden flooring has grown for a number of reasons,' Ola Wilhelmsson goes on. 'One of the main reasons is an increase in environmental awareness. Parquet floors are made from a mainly renewable raw material and are at the same time hygienic and easy to look after. All-over carpets are a thing of the past and our customers want beautiful, hard-wearing floors that are also easy to keep clean.'
Many houses built during the sixties and seventies are now starting to be renovated in Sweden and in Europe it is the houses built throughout the post-war period that are now ripe for renovation. At the same time, environmental awareness is increasing and the 'road' has become much clearer during the last six or seven years.

Increased capacity
Part of the development is the investment in Blomstermåla Fanérfabrik where the company intends to build an entirely new production line for thin wooden flooring. This will provide an element of security for the employees.
The investments in Nybro go to the sawmill, the flooring works and the bioenergy plant. In addition, the total environment will be further improved to meet the future needs of the authorities or of the market.
The Kährs Group currently employs ca. 1550 staff and in 1994 turned over 1.5 billion SEK.

For further information contact:
Group Manager Ola Wilhelmsson
AB Gustaf Kähr
Box 805
382 82 Nybro
SWEDEN
Tel. +46 481 460 00
Fax: +46 481 180 30


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