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LM Glasfiber Reducing Production Capacity

21 March 2005

LM Glasfiber expects to reduce its production capacity at the Lunderskov factory in the immediate future. The factory is one of three plants in Denmark. The capacity adjustment is prompted by the continued decline in the German market, which is LM Glasfiber’s most important market in Northern Europe. About 170 employees are expected to be affected by the capacity adjustment with the final number of employees involved depending on the ongoing local negotiations, which was announced to employees at meetings held yesterday.

The announcement had its origins in the news issued last week following publication of the companies Annual Report.

The Report, although showing a 32 percent increase in revenue compared with 2003, stated that no growth was expected in the Northern European market “due to consistently contracting trends in the German, Dutch and Austrian markets. We believe that these trends may only just be balanced out by the anticipated growth in the UK and some markets in Scandinavia.”