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Pulp and Paper Chemicals

The performance of our Pulp and Paper Chemicals business in the second quarter was slightly below the second quarter of 2010. Volume development remained positive, driven by the strength in chlorate demand, particularly in South America. South America is quickly becoming the world leader in wood pulp, and our Pulp Chemicals business is there to support this growth. In Q2, margin pressure increased as input costs escalated – relative to 2010 – and currency effects were unfavorable, most notably in Paper Chemicals. Margin management and cost containment initiatives have been put in place in Pulp and Paper Chemicals.

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