ABB awarded $29 million pulp mill service contract

Full-service agreement covers second facility for Carter Holt Harvey group

Zurich, Switzerland, September 22, 2004 - ABB, the leading power and automation technology group, said today it has signed a full-service alliance agreement with Carter Holt Harvey Pulp & Paper, a leading Australasian forest products company producing wood products, pulp and paper, and packaging.

The five-year contract worth more than $29 million covers all reliability and maintenance services for the Tasman pulp mill in Kawerau, New Zealand. It follows a $50 million agreement with ABB in 2003 to assume service responsibility at Carter Holt Harvey’s mill in Kinleith, New Zealand.

"This contract reflects the high value of the service we offer," said Dinesh Paliwal, head of ABB’s Automation Technologies division. "Building on our successful partnership at the Kinleith site, Carter Holt Harvey has expanded our responsibility to a second facility, and we are delighted by the continuing confidence emerging from our positive contributions."

"This agreement will allow us to build a more competitive business and help us to provide a sustainable future by focusing on our core production operations," added Carter Holt Harvey Pulp & Paper chief executive, Brice Landman. "Since ABB started providing maintenance at our Kinleith mill, we’ve achieved significant gains in production and cost efficiencies. We expect to see similar benefits at Tasman."

The Tasman mill produces about 270,000 tons of specialty pulp products annually for the high quality paper, tissue and building products markets.

The new full service alliance is a performance-based agreement measured on equipment effectiveness, maintenance costs, and maintenance spares inventory value. ABB will direct all maintenance services at the Tasman mill, management of spare parts and all inventory.

ABB ( is a leader in power and automation technologies that enable utility and industry customers to improve performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 105,000 people.

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