FRANCE (News release) -- Lecta has announced the temporary shutdown of line 8 production at its Condat mill, in the French town of Le Lardin Saint Lazare, from the end of April. The decision will be reevaluated in the following months depending on market developments.

The decrease in coated paper demand over the last several years resulted in overcapacity in our industry. The worsening of this trend observed in the last months is the main reason for the temporary line 8 shutdown at the Condat mill.

The Condat brand product range and service levels during this period are guaranteed due to efficiency improvements and streamlining on Condat line 4 as well as through the contribution of the Group's other coated paper mills.

Despite the temporary shutdown, meeting the overall demand of Lecta's coated paper customers is assured, given the Group's total production capacity of more than 850,000 tons per year.

At the same time, Lecta continues working on a strategic transformation plan that will allow Condat to move forward with greater chances of success, although this project needs further definition over the next few months.

This plan would entail the transformation of production line 8 from manufacturing two-side coated papers to manufacturing specialty papers for labels and flexible packaging, a market in which Lecta has extensive experience given its manufacturing operations in Spain and business operations worldwide.

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