Benno Hundgeburt, Deputy Chairman of the Board of Management of ZANDERS Feinpapiere AG: "The result is still not satisfactory. However, in spite of low capacity utilisation a considerable reduction in fixed costs enabled us to achieve a positive result". The restructuring measures, including investments to increase efficiency and improve distribution and logistics were continued as planned in 2002. Further investments will be made in 2003 with the aim of further reducing fixed costs.

The integration of Zanders into the M-real group was also continued in 2002. Zanders is now a part of M-real’s Commercial Printing division. A specialities unit with headquarters in Bergisch Gladbach has been formed for the M-real specialities in this division.

At € 459 million, the turnover of the Zanders group in the 2002 financial year was down around 10 percent on the turnover for the 2001 financial year (€ 513 million). Due to the weak state of the market for fine papers sales fell by around 3 percent from 360,000 tonnes to the current figure of 350,000 tonnes in 2002. Capacity utilisation at Zanders was low, especially in the second half of 2002. As a result of the weak market situation, but also because of the investments made primarily in the second half of 2002, the annual average for capacity utilisation was around 76%.

Dr. Jürg Müller, Chairman of the Board of Management at Zanders: "The restructuring of Zanders is well on course, particularly due to the reduction of fixed costs. The measures being implemented to increase efficiency and improve distribution and logistics will be rigorously continued."