The slowdown in the international economy and falling pulp prices have halved Sdras profits for the first six months of 2001 to 30.6m (SEK443m).
Chief executive Anders Wahroln said that he expected "capacity limitations in both pulp and paper to continue into the autumn, due to the economic climate".
The price of Sdras main product, bleached sulphate softwood pulp, fell from 500 per tonne (US$710) to 352 per tonne during the period.
Net sales increased 8% to 378m, while production of pulp at the groups Mnsters, Mrrum, Vr, Tofte and Folla plants also increased by 200,000 tonnes to 911,000 tonnes.
Group investments amounted to 36.4m. The largest on-going project is a 44.4m recovery boiler at Vr Bruk.
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