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Pulp and Paper Chemicals

Volumes recovered during Q1, showing encouraging signs in all regions, with developments being particularly strong in the specialty products range. Driven by higher capacity utilization at pulp and paper mills, volumes rose 10 percent compared with the same quarter last year. The business did experience some price pressure in mature markets, which was partly offset by favorable currency exchange effects. Revenue increased 6 percent compared with Q1 2009. Increased variable costs, such as energy and key raw materials, were compensated by favorable mix effects. Various reorganization and cost efficiency projects are still being implemented and are contributing to the overall result. The business also achieved another milestone in the roll-out of an integrated global ERP solution.

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