Papier u. Kartonfabrik Varel accomplishes significant investment end of 2010/beginning 2011 in reconstruction of
its PM 4. After completion of complex reconstruction and maintenance measures, technical capacity of PM 4 will be
above 300.000 to per year. Total capacity of paper output rises from 500.000 at present to 600.000 annual tons at
Varel. Reconstruction of the machine enables also an enlargement of product assortment. At present PM 4 produces Wellenstoff and Testliner in the grammage range of 120 gsm to 220 gsm.

In addition to reconstruction of paper machine itself, also stock preparation unit will be upgraded in an ambitious
program by Varel's engineers until summer 2011. After completion of all reconstruction measurements the refitted
machinery will not only be able to produce the present set up in grades, but also to provide growing markets of
white liners with paper grades on 100% recycled fibre basis. According to the current planning about 50% of tonnage of PM 4 will be reserved for production of white grades. The newly designed scheme for PM 4 as a multi-product-machine will also enable the mill to produce high performance fluting grades and Kraftliner substitutes. Deckle is kept at 510 cm until futher notice, but all relevant components of machine are designed for 530 cm deckle. If trend to broader corrugators continues Varel could respond accordingly within the following years. PM 5 which came on steam in 2004 with its 560 cm deckle is already perfectly adapted to latest development in low-grammage corrugating papers markets. Varel's production volume in grades JadeWelle and JadeLiner will nearly be kept constant after implementation of reconstruction due to enlarged total capacity.