The revaluation is based on a new harvesting plan and on changed assumptions regarding future price and cost development.The new harvesting plan has an impact of 2.4 billion Kronor on the valuation of Holmen's growing forest. In addition to the rate of harvesting, the assumptions regarding future sales prices and costs also play a major role in determining the recognised value of the forest. Over the past few years, both prices and costs have risen more than was previously estimated. In valuing the forest holdings, assumptions about future price and cost inflation have therefore been upgraded, which will have a total impact of 1.2 billion Kronor on the value."The rapid price rises of recent years have been driven by strong demand from the sawmills plus greater use of wood for energy production. Viewed over a longer timeframe, wood prices have risen in line with inflation. The new valuation is based on the view that the forest is an asset that will increase in value over time," says Magnus Hall, CEO of Holmen.Holmen has 1.3 million hectares of land, of which 1.0 million hectare is productive forest land. /AA