Fortress Paper Dresden Mill Reaches Utilization Rate Milestone

The Dresden mill has operated 24 hours per day (100% utilization) without stoppage for 20 consecutive days.

May 9, 2012 - Fortress Paper said that its wholly-owned subsidiary, Dresden Papier GmbH, a leading manufacturer of wallpaper base, has operated 24 hours per day (100% utilization) without stoppage for 20 consecutive days compared to an annual average utilization rate of 93% in 2011. As a result, waste has been reduced to approximately 5% from an annual average waste rate of 9.35% in 2011.

"We are delighted with Dresden's operating consistency and efficiency. We believe that these production milestones will provide a meaningful impact to our financial results in the second quarter", said Chadwick Wasilenkoff, Chairman, Chief Executive Officer and President of Fortress Paper.

The Dresden Mill is located in Germany in the town of Heidenau, approximately 12 kilometres south of the city of Dresden and produces non-woven wallpaper base for manufacturers primarily in Eastern and Western Europe. The mill, which began production of wallpaper base in 1976 and non-woven wallpaper base in 2002, has an annual production capacity of approximately 54,000 tonnes and employs approximately 135 workers.

Fortress Paper operates internationally in three distinct business segments: dissolving pulp, specialty papers and security paper products. The company operates its dissolving pulp business at the Fortress Specialty Cellulose Mill located in Canada which is also in the process of expanding into the renewable energy generation sector with the construction of a cogeneration facility. The Company operates its specialty papers business at the Dresden Mill located in Germany, where it is a leading international producer of specialty non-woven wallpaper base products. The Company operates its security paper products business at the Landqart Mill located in Switzerland, where it produces banknote, passport, visa and other brand protection and security papers, and at its Fortress Optical Facility located in Canada, where it manufacturers optically variable thin film material.

SOURCE: Fortress Paper Ltd.