After the first half of the 1970s gave high prices, the company experienced low prices during the latter part of the decade. Meanwhile, it was a severely unmodern mill, oftentimes employing archaic and inefficient production processes. Per Ethold was hired as chief executive officer in 1977 and started the process of modernizing the mill. By 1981 all auxiliary production mills were closed, including fine-grade paper, sulfite pulp and sawed wood. This led to major layoffs and demonstrations by the labor unions.