Pulp-Paperworld.com / European News

BillerudKorsnäs and Uppsala university has initiated a multi-annual collaboration to develop paper-based electrode materials. Based on achievements at Uppsala university in combination with BillerudKorsnäs competence in industrial production and packaging development, the future's sustainable fiber-based packaging will be explored.

billkorlogoThe co-operation, which lasts three years, has been agreed between BillerudKorsnäs and Uppsala university Holding and aims to further develop research knowledge from Uppsala university to create energy storage in fiber structures by coating cellulosic fibers with electrically conductive polymers.

Behind the interdisciplinary research stands professors Maria Strömme and Albert Mihranyan at the department of nanotechnology and functional materials, as well as professor Leif Nyholm at the department of Inorganic Chemistry at Ångström Laboratory,

Techniques for energy storage in fiber structures could enable storage of electrical energy in a paper or cardboard sheet - a paper battery simply expressed!

"Future packaging solution will offer consumers more features than today. With electrical energy stored in the paper itself, new opportunities are being opened to create these new features – the prerequisites for this we want to explore in collaboration with Uppsala university," says Magnus Wikström, CTO of BillerudKorsnäs.

Published in European News

billkorlogoAs communicated earlier BillerudKorsnäs experienced a major breakdown in the digester in the semi-chemical pulp production line in Gruvön. The problem has now been resolved. The pulp line and the fluting machine PM6 is back in production.

The impact on EBITDA for the breakdown is estimated to approximately SEK 25 million after compensation from insurance.

“The impact of the breakdown could be limited thanks to a very efficient work in the mill, and we could start up production relatively quickly. Now we have to limit the indirect damage in the form of missing deliveries and customer relations,” says Per Lindberg, CEO of BillerudKorsnäs.

Related article : BillerudKorsnäs production of semi-chemical pulp supplying PM6 in Gruvön experience breakdown

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world-leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 8 production sites in Sweden, Finland and the UK and about 4 300 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in European News

BillerudKorsnäs experienced a major breakdown in the digester in the semi-chemical pulp production line in Gruvön. The pulp line supplies the fluting machine PM6 with pulp and consequently no fluting from PM6 can currently be produced. The breakdown of the pulp line does not have an impact on the integrated chemical pulp mill, neither does it impact the production of kraft paper, liner or liquid packaging board at the mill.  

billkorlogo“At this point in time it is not possible to estimate the financial damage and consequences on customer deliveries, but it will have a significant impact on the current quarter financials. We will return with additional information when we know what the impact will be,” says Per Lindberg, CEO of BillerudKorsnäs.

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world-leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 8 production sites in Sweden, Finland and the UK and about 4 300 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in European News
Friday, 28 April 2017 11:16

BillerudKorsnäs Growing again

CEO Per Lindberg comments on the development during Q1 2017:
“The first quarter of 2017 saw growth on the back of high demand in the markets across all business areas. Sales are showing better than expected growth, and our production is in fact at an all-time high for a single quarter. However, our operating profit during the quarter suffered from spillover effects from 2016, and we have as a consequence undertaken significant measures to address both our start-up performance as well as quality performance.

billkorlogoTwo of the key elements in our growth strategy and production capacity are our major ongoing investments in Skärblacka and Gruvön. We are glad to see that the start-up of these projects has been successful and that they are well under way. Together with new solution sales initiatives we have laid a strong foundation for continued growth.”

THE RESULT
Our operating profit SEK 550 million falls short of our expectations. This is due to the ramp up of Rockhammar after the rebuild in 2016 and quality costs emanating from production disturbances during the second half of 2016. Even if the situation has improved and stabilized in Rockhammar, we may experience some minor costs also in the upcoming quarter. However, looking at the current market, we see an overall positive development across the board and a solid performance in terms of sales growth, 5% during the first quarter compared to the same quarter last year. Within Consumer Board we even exceeded our expectations during the beginning of the year, driven by strong sales to all major liquid packaging board customers. During the quarter we were subject to an unexpected inspection under EU competition rules as part of a larger investigation of the market for bleached and unbleached kraft papers. We have no indications of the outcome from the inspection.

MARKET OUTLOOK
All of our business areas are currently showing a favourable development, partly due to underlying strong demand but also some seasonal improvement in Packaging Paper. We believe this will continue also in the second quarter and we now need to meet this strong demand with high production volume and quality.
The growing demand for sustainable packaging does not only drive demand for sustainable materials. We can also detect an increasing need for holistic packaging solutions throughout the whole value chain of the packaged product, especially in developing markets. Such solutions are necessary to enable a shift toward packaging that help create better packaging performance, especially in terms of sustainability. We are already in a position where we can offer such solutions – Managed Packaging within Corrugated Solutions, Sack Sales and system sales such as Axello Zap within Packaging Paper to name a few. Today these new solutions offerings still constitute a small part of our total business but they are growing more rapidly than material sales and we expect that development to continue and accelerate.

STRATEGY
Our target is to deliver profitable growth through offering both materials and solutions. Sustainability is becoming an increasingly integrated part of our core offer along with cost, protective and appearance performance criteria. It is often an entry ticket to new business and a result of our efforts to challenge customers to choose more sustainable alternatives, BillerudKorsnäs alternatives. One clear example of this is the launch in March of a Sack Sales partnership in Malaysia to serve the market throughout South East Asia. We can through delivering a complete packaging solution based on our material, but by sourcing the converting, provide the market with a product that replaces less sustainable solutions made of plastic. Our solution provides a better carbon footprint but also a much better working environment for the end user which for instance can be cement. Such examples of new sustainable solutions and business models in combination with the growth in production of sustainable materials generated by the large investments in our production structure show that we have the ability to deliver on our strategy for profitable growth.

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world-leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 8 production sites in Sweden, Finland and the UK and about 4 300 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in financial News

BillerudKorsnäs first quarter results are negatively impacted by quality costs emanating from production during the second half of 2016 and start-up costs for the Rockhammar re-build late 2016. Operating profit for the first quarter is estimated to amount to approximately SEK 550 million.

billkorlogo"It is both unexpected and frustrating that we have to take these one-off costs in an otherwise positive development. Production is delivering to expectations. Production volumes were the highest ever in a single quarter, and sales, especially for Consumer Board, is showing better than anticipated growth.  The market trends for Packaging Paper and Corrugated Solutions are also very strong at the moment so looking beyond these two issues it actually looks pretty good”, says Per Lindberg, President & CEO.

The extra costs for the quality problem and the re-build amount to approximately SEK 80 million. There is also a timing issue between Q1 and Q2 for costs related to the maintenance shutdown in Gruvön where approximately SEK 15 million more than previously guided is taken in Q1, this will reduce Q2 impact with SEK 10 million compared to previous guidance. Additional SEK 10 million impact the result negatively due to reassessment according to IAS16 and relates to costs for moving and education in the restructuring project in Skärblacka. This will impact the full-year results with approximately SEK 45 million and hence reduce the capex with the same amount.

The results are still preliminary and have not been reviewed by the auditors.

BillerudKorsnäs will publish its first quarter report for 2017, on April 20, 2017 at 07:00 CET.

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world-leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 8 production sites in Sweden, Finland and the UK and about 4 300 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in financial News

Today, the European Commission initiated an inspection of BillerudKorsnäs under EU competition rules as part of a larger investigation of the market for bleached and unbleached kraft papers.

billkorlogoBillerudKorsnäs cooperates in full with the European Commission.

This information is information that BillerudKorsnäs AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact person set out above, at 13.35 CET on March 7th 2016. 

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world-leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 7 production sites in Sweden, Finland and the UK and about 4 300 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in European News

BillerudKorsnäs has awarded Voith with another two orders. One is for the rebuild of the existing PM7 in Skärblacka, Sweden, and the other one is for the relocation of PM7 of BillerudKorsnäs from Tervasaari, Finland to Sweden. The relocated production line will become the PM10 at the Skärblacka mill.

voith logo 2013Voith will equip the PM7 in Skärblacka with a film press unit for surface treatment of the MG papers. The scope of supply for the PM7 also includes a steam-heated hot air dryer for contactless drying following the surface treatment as well as a drying-hood in the new after-dryer section.

The relocation of the production line for MG paper from Tervasaari to Skärblacka will be project managed by Voith, which will also be responsible for the entire logistics, the basic and detail engineering and the disassembly, installation and commissioning of the production line. Under the contract, Voith will carry out a safety audit on the existing machine, prepare a master plan for preserving and repairing parts to be moved and refurbish corroded components. Voith will also deliver a new soft calander and steam box for PM10.

About Voith Paper
Voith Paper is a corporate division of Voith and is one of the leading partners and pioneers in the paper industry. Through constant innovations, Voith Paper is optimizing the paper manufacturing process, focusing on developing resource-conserving products to reduce the use of energy, water and fibers. Furthermore, Voith Paper offers a broad service portfolio for all sections of the paper manufacturing process.

About the company
For 150 years, Voith’s technologies have been inspiring customers, business partners and employees around the world. Founded in 1867, Voith today has around 19,000 employees, sales of €4.3 billion and locations in more than 60 countries worldwide and is thus one of the largest family-owned companies in Europe. Being a technology leader, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive.

Published in European News
Thursday, 02 February 2017 09:07

Preparing for the future

CEO Per Lindberg comments on the development during Q4 2016:

billkorlogo“When we look back at 2016 we are very happy to see that we across the board have record production and sales volumes. The one issue is our lack of growth within Consumer Board due to the production disturbances earlier in the year. Looking forward we have good reason to believe this will not be a concern. We have stabilised our production and the most important event last year, the decision to build a new board machine in Gruvön, gives us the foundation for long term growth. Together with the decision to make Skärblacka a world leading MG-centre it also optimises our production structure. Looking at the markets we are confident we will be able to deliver continued growth in line with our plans and expectations. The foundation of our business is sustainable packaging materials and solutions and the demand is growing across our markets all over the world.”  

THE RESULT

We deliver a solid performance with an increase in sales volumes of 1% for the full year 2016 compared to 2015. We have record production and sales volumes and on top of that our cash flow and adjusted EBITDA is at an all-time high and our working capital end of 2016 at an all-time low. We are not satisfied with the growth in the Consumer Board segment during 2016, but we have put the production disturbances related to the rebuilds in 2015 behind us, and the anticipated improvements will come as we now are able to run our capacity on higher levels to match market demand and growth. Worth mentioning is also a strong finish in 2016 for business area Packaging Paper with an all-time high profit.

MARKET OUTLOOK

It is fair to say that both in the packaging industry and among brand owners it is a widespread anticipation that the largest potential disruptive development for packaging going forward is a growing environmental awareness among consumers. We have long seen this when we analyse our markets, in dialogue with our customers and partners but also in growing demand for sustainable packaging. In recent times we have also seen a growing interest in sustainability from investors and owners. In a global political context that is unpredictable we still stand firm in our belief that consumers expect more and more from products and companies in terms of sustainability and that this creates growing market opportunities for us.

For each of our business areas the markets were stable in Q4 and we expect that to continue in Q1.

STRATEGY

To seize the long term market opportunities we have a clear strategy of profitable growth that is divided in two main categories – packaging materials and solutions. During 2016 we showed that we are committed to these ambitions. The two major investments announced during the year both underline the intention and provides the platform for growing the materials side of our business. But we have also taken several important steps towards accelerating our growth in solutions. During 2016 we established BillerudKorsnäs Venture AB that will find and invest in young innovative companies with technologies or competence that in combination with our capabilities might create completely new business opportunities. In Q1 we invested in ecoXpac (specialised in advanced 3D-forming) and during Q4 we invested in Kezzler and in Hanhaa (Internet of Packaging). While these investments aim to yield new revenue streams in the long term, solutions are already becoming an important part of the current business areas. This is very evident in Corrugated Solutions with an aggressive growth plan for Managed Packaging – once an acquisition of the company Paccess.

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world-leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 7 production sites in Sweden, Finland and the UK and about 4 200 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in financial News

Cind, using technology from the defence and security company Saab, has entered into an agreement with BillerudKorsnäs for the measuring of pulpwood at five facilities in Sweden. With this arrangement in place, Cind has now signed nine contracts during its first year of operations.

Cind has developed a system that massively streamlines the process of volume measurement and remuneration in the timber industry. BillerudKorsnäs has now signed a five-year rental agreement for five facilities in Sweden. 

2017 01 24 111102

"Our equipment creates major efficiency gains within volume measurement, which is something that the timber industry recognises," says CEO Anders Nyberg. "The technology from Saab negates problems common to other technical solutions. We are extremely happy to have signed nine contracts during our first year of operations."  

"BillerudKorsnäs works actively with suppliers at the leading edge of technology in our ambition to provide and develop a sustainable pulpwood supply. We chose CIND owing to their solution, which utilises unique stereo camera technology. In part for the compact camera equipment solution, in part because of the innovative development possibilities afforded by automatic volume calculation of pulpwood stacks on a vehicle," says Stig Jonsson, Senior Specialist Wood Logistics at BillerudKorsnäs Skog. 

The calculation equipment makes use of Saab's stereo camera technology, which can provide highly accurate precision volume calculations of, e.g. pulpwood loads and individual timber logs. The technology facilitates the rapid measurement of precise volumes of pulpwood while still on the lorry. The business model involves Cind renting out and maintaining the systems.  

Cind AB

Cind is a newly-established company which develops and supplies measuring technology and measuring equipment based on defence and security company Saab's world-leading stereo camera technology. The company is jointly owned by Saab Ventures, Almi Invest and a number of private investors within the timber and logistics industries, as well as Cind's operational management; Anders Nyberg and Leif Erlandsson. Cind has offices in Linköping and Norrköping.

Published in European News

BillerudKorsnäs is taking a further step into the Internet of Packaging by investing in a minority holding in UK technology company Hanhaa. The company’s solution allows users to track not only the location but also the condition of their deliveries in real time and on a large scale no matter the country or carrier. 

The investment is being made by BillerudKorsnäs Venture AB, which was formed last spring to develop new business for the Group by linking up with interesting innovation companies in early stage. The objective is to gradually generate and develop new business. The aim is to work closely with companies and actively contribute to developing new solutions in the packaging value chain. This is a relatively small investment for BillerudKorsnäs in financial terms.

“Combining our own core-related skills with the skills of these start-up companies will allow us to create fruitful collaborations and together identify entirely new solutions. We will also draw on our experience and knowledge of bringing products to market on an industrial scale. Together with Hanhaa, we’re continuing to build tomorrow’s Internet of Packaging. Expanding our offering of digital solutions will allow us to continue challenging conventional packaging for a sustainable future,” said BillerudKorsnäs Venture Managing Director Anders Persson.

2017 01 17 122312

Hanhaa’s system, Parcelive, tracks deliveries along the entire logistics chain. Transmitter devices are placed in parcels and use GPS and GSM to track their position. Sensors measure and report in real time the condition of the goods, their location and what they have been exposed to in terms of temperature, drops and knocks. The system works regardless of country, scale or carrier. The devices are managed using a return system. The recipient pushes a button to prompt the display of a return address and then posts the device back.

“BillerudKorsnäs’ wide-ranging skills and network within sustainable and efficient packaging solutions make them a perfect partner as we take our technology out into the logistics and packaging industry on a large scale,” said Azhar Hussain, CEO of Hanhaa.

The solution is especially suited to logistics optimisation, continuous cold chain management, high-value goods and time-critical shipments, eg. allowing maintenance engineers to avoid expensive production losses by tracking consignments and precisely planning trips to customers.

Hanhaa is BillerudKorsnäs Venture’s third investment. The previous two were: Denmark-based EcoXpac, which together with BillerudKorsnäs is developing a paper-based bottle with the long term aim to contain the pressure of carbonated drinks; and Norway-based Kezzler, a global leader in technology for assigning unique digital identities for individual packaging. 

BillerudKorsnäs provides packaging materials and -solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 7 production sites in Sweden, Finland and the UK and about 4 200 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in Logistics
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