Pulp-Paperworld.com / European News

The board of BillerudKorsnäs has today made the decision to carry out the largest investment in the history of the company and one of the largest in Sweden in recent years - the investment in a new board machine at the Gruvön site. The decision has been made in view of growing demand for sustainable packaging solutions for food and beverages globally.

The investment of SEK 5.7 billion includes the construction of a new board machine at the Gruvön production site and rebuilds in the existing pulp mill. The board machine will have an annual capacity of 550,000 tonnes of board, making it one of the largest of its kind in the world. The machine will produce liquid packaging board, cartonboard, food service board and liner. The investment project will start immediately and production is expected to start in the first quarter of 2019.

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“This is a historical decision for BillerudKorsnäs. The stable market growth in liquid packaging board and other cartonboards, together with our unique expertise in this area, mean that we are perfectly positioned to satisfy global demand. Access to renewable raw materials from sustainably managed forests in the Nordic region was a key factor when evaluating different alternatives,” says Per Lindberg, President and CEO of BillerudKorsnäs.

Smart packaging solutions can reduce dependence on fossil fuels, reduce climate impact and littering, and also increase food safety. Demand for sustainable solutions is growing around the world as increasing numbers of brand owners, food retailers and consumers make conscious choices. As current capacity at BillerudKorsnäs’ production units is not sufficient to meet future demand, the opportunity of new board production at Gruvön has been investigated in detail since 2015.

In addition to growth in liquid packaging board and other cartonboards, today’s decision will result in a streamlining of the production structure within the company. Current paper production at Gruvön will gradually be transferred to other plants within the company during ramp up of the new board machine, with the aim of offering customers fully satisfactory alternatives. Gruvön’s production of high quality fluting will not be affected by the investment.

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 European News

After promising initial tests, BillerudKorsnäs is now moving ahead with full scale trials adding microfibrillated cellulose, MFC, to its paperboard products. The initiative is made possible through a new cooperation with Norwegian biorefinery pioneer Borregaard.

billkorlogoRecent development has allowed for industrial scale extraction of the components of cellulosic fibres in wood, the fibrils. For a paper and board maker, adding microfibrillated cellulose, MFC, in the production process opens up opportunities for new functionality and for further improved resource efficiency.

To explore these opportunities, BillerudKorsnäs has during 2016 carried out small scale testing in full production. Based on the results of these initial tests, the company has now decided on full scale trials to start in early 2017. BillerudKorsnäs’ short term aim is achieving the same strength properties of its paperboard products, but with lesser material, so called light weighting. For the future, using MFC could possibly also be a key to replace the thin barrier layers of plastics or aluminium today often added to the otherwise renewable fibre based packaging.

The full scale trials are made possible through a new cooperation with Borregaard, a global leader in biorefinery innovation. Under this cooperation, BillerudKorsnäs will be supplied with MFC from the recently started MFC plant of Borregaard in Sarpsborg, Norway.

“By adding MFC we want to explore how to further improve our world class materials to make them even more competitive against their main competitor, fossil based plastic packaging. That is how we increase our positive contribution from a sustainability standpoint. We are enthusiastic over our cooperation with Borregaard and with them as our supplier of MFC in this development program”, says Magnus Wikström, CTO at BillerudKorsnäs.

“Borregaard welcomes this cooperation with BillerudKorsnäs. Our Exilva MFC products have excellent strength and barrier properties and should hence be good materials for BillerudKorsnäs to further develop their position as a world leader in sustainable packaging solutions, says Pål Romberg, Excecutive Vice President Exilva.

Borregaard has used more than 10 years to develop the Exilva MFC technology and is the first company in the world to commercialize MFC through its new 1.000 ton plant which started in Q3 this year.

Published in European News

2016 12 08 123110Plastic bags are commonplace in retail. But there’s an alternative that is much better for the climate. “Of the different carrier bags that we studied, the paper bag made by material from BillerudKorsnäs has the smallest carbon footprint,” said Lena Dahlgren from IVL Swedish Environmental Research Institute. 

EU citizens use an average of 200 plastic bags a year, many of which are used in the current Christmas shopping period. Lots of plastic bags are only used once and end up in landfill.

A Swedish life cycle analysis carried out by IVL Swedish Environmental Institute has now shown that the carbon footprint of a carrier bag made from recycled plastic is twice that of a paper bag made by material from BillerudKorsnäs.

“The company uses a significant proportion of renewable energy in its production. That contributes considerably to paper bags made by their materials having the smallest carbon footprint,” said Lena Dahlgren, project manager at IVL.

BillerudKorsnäs is a Swedish company that aims to be a leader in the transition to a sustainable society. The company produces low-carbon packaging material based on responsibly managed forests in the Nordic region and is now encouraging retailers across Europe to reduce their carbon footprint.

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“The study clearly shows the advantages of our bio-based material and our energy-efficient production. We now know with certainty that our product has significant climate benefits over other materials,” said Henrik Essén, SVP Communication & Sustainability at BillerudKorsnäs.

An EU directive from last year requires a reduction in the number of plastic bags. The EU’s main aim is to reduce the number of plastic bags being thrown away. But the new study shows that switching to paper bags also offers lower carbon emissions.

“The results of this study now offer retail chains the opportunity to review their carrier bag offering and choose low-carbon bags, and we can be part of that solution,” said Henrik Essén.

Read the full report here:

http://www.billerudkorsnas.com/lifecycleassessment

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 4 200 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 European News
Thursday, 01 December 2016 09:35

Per Lindberg receives award for best CEO

BillerudKorsnäs’ CEO Per Lindberg was awarded for best CEO in Large Cap Company in IR Nordic Markets Sweden 2016.

billkorlogoIR Nordic Markets is the biggest study of IR in the Nordic region and was carried out by Regi for the 19th year in a row. In the study, presented yesterday at IR Nordic Markets Awards Sweden 2016, assessments from analysts in the Nordic region and Europe formed the basis of the analysis of the financial communication of listed companies.

The category Best Swedish CEO Large Cap consisted of 46 companies and is calculated from the averages of three criterias: Trustworthiness, Public performance and Communication. Based on these criterias, financial analysts have ranked Per as the top performer.

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 European News

Paulina Ekvall has been recruited as the new Senior Vice President Corporate Human Resources at BillerudKorsnäs. She was most recently at Arla Foods Sweden, where she was Senior HR Director and successfully oversaw the organization’s move towards greater customer and employee focus.

2016 11 22 183259Paulina Ekvall has a solid background as an HR manager in various multinational environments, including at Unilever, Johnson & Johnson and Pfizer Consumer Healthcare. Paulina was Senior HR Director at Arla Foods Sweden for the past few years. Her work attracted recognition in 2015 when she won that year’s HR Manager in Human Growth Award.

“We are delighted to have been able to recruit Paulina Ekvall to the post of HR Director at BillerudKorsnäs and wish her a warm welcome to us. BillerudKorsnäs is a company with great ambitions and we know that the realization of these ambitions requires that all our employees drive change every day, on both large and small scales. I therefore look forward to incorporating Paulina's experience and energy into our future development,” says Per Lindberg, President and 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 seven 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 European News

BillerudKorsnäs’ has been recognised for its leadership in response to climate change and has been awarded a position on the Climate A-list by CDP. CDP is a non-profit organisation that works to transform the way the world does business, thus preventing damaging climate change.

billkorlogoThe CDP Climate A-list was produced at the request of 827 investors representing joint assets of US$100 trillion. A total of 193 companies, or 9% of all companies that submitted its climate disclosures were included on the list, which reflects global leadership in actions to mitigate climate change.

“It is very rewarding that our work is recognised around the world. This is the second consecutive year that we are included on CDP's Climate A-list; in addition BillerudKorsnäs was earlier this autumn also included in the Dow Jones Sustainability Index Europe. Sustainability is integrated into our business, thus taking a holistic approach, which is key to success. For example, in 2015 we succeeded through systematic efforts reducing our own greenhouse gas emissions by 9%, in addition to this our renewable packaging materials and solutions can contribute positively by replacing fossil materials, says Henrik Essén, Senior Vice President Communication and Sustainability.

CDP, formerly Carbon Disclosure Project, is an international, non-profit organisation providing a global system to measure, disclose, manage and share vital environmental information.

Read CDP’s annual global climate change report here; www.cdp.net

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 4 200 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 European News
Friday, 21 October 2016 07:08

Firm performance in line with plans

CEO Per Lindberg comments on the development during Q3 2016:

billkorlogo”Once again we show a stable performance and I am happy to see that we deliver results as expected. Our production has stabilized and we have been producing in line with planned levels. The one issue for me is the lack of growth in Consumer Board. This is due to the production problems we suffered in previous quarters, but our view on the Consumer Board market has not changed and we expect to see the growth coming back as we catch up on inventory levels.”

THE RESULT

Net sales and adjusted EBITDA in Q3 are on par with previous year’s performance and in line with our expectations which is very satisfactory. We are not satisfied with our current lack of growth in the Consumer Board segment, but we have put the production disturbances related to last year’s rebuilds 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. Unfortunately, at the end of the quarter the recovery boiler in Frövi experienced serious problems and we were forced to stop it before our planned maintenance shutdown. We can run the board machine on lower capacity on external pulp but as a consequence we will see additional costs for pulp and the repair of the recovery boiler in the coming quarter beyond our previous estimates.

MARKET OUTLOOK

Overall the markets in all three business areas were stable and we anticipate that to continue.

The brown sack paper market improved compared to previous quarter. The market demand and local pricing for NBSK pulp also remained stable in the quarter.

Our view on the Consumer Board market continues to be very positive. Local pricing has been stable and we are not expecting any changes.

Within Business area Corrugated Solutions the demand for fluting has strengthened throughout the quarter and local pricing was unchanged. Managed Packaging sales have continued to deliver good progress.

STRATEGY

Our company has high sustainability ambitions and performance, hence it makes us proud when it is recognized and verified. During the quarter, we have been awarded the Gold of EcoVadis for the third consecutive year, and we have been included in one of the world's most prestigious sustainability indexes, the Dow Jones Sustainability Europe Index. BillerudKorsnäs is the only European company in its category to be included.

BillerudKorsnäs wants to be a positive force in the development towards a sustainable future by challenging conventional packaging. One way of doing that is to find and invest in attractive companies in the early stages to eventually generate new business and solutions later on in the packaging value chain. "Internet of Packaging" is one of several areas of focus, and through our venture company it now includes the investment in Kezzler.

Our innovation and design agency NINE recently achieved great success at Pentawards, the packaging world's finest award, through gold and bronze in the concept category. Yet another example of how we challenge conventional 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 8 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 European News

BillerudKorsnäs innovation and design agency NINE wins gold and bronze in the concept category at Pentawards, the packaging world's finest award. NINE is a subsidiary of BillerudKorsnäs and offers services within packaging innovation and design to brand owners, primarily within fast moving consumer goods.

The gold is awarded to a packaging concept for travel size organic beauty products, made by the extremely stretchable paper FibreForm from BillerudKorsnäs. This introduces a renewable material as an alternative to a product area today completely dominated by fossil materials. The bronze is awarded to a concept paper bottle for carbonated beverages, which is an ongoing innovation project within BillerudKorsnäs and an example of how the company is challenging conventional packaging for a sustainable future.

hinoki

What if carbonated drinks could be packaged in paper! BillerudKorsnäs challenges conventional packaging with new solutions and innovation projects.

- NINE works on the forefront of our packaging solutions offer with deep consumer insights and an ear to the market. It is a strength to BillerudKorsnäs to be in this position in the value chain and very pleasing that Pentawards once again confirms NINE’s ideas and innovative approach within our industry, says Henrik Essén, Senior Vice President Communication and Sustainability.

BillerudKorsnäs has clear goals for sustainable and profitable growth, which in part is created by strengthening its position in the value chain. Therefore the company's sustainable materials are gradually and increasingly complemented with offering packaging solutions based on many years of expertise on packaging's role in society and their life cycle from manufacture to recycling. The orientation towards solutions is a natural development as new markets often demand comprehensive solutions when new materials are introduced.

MothersDilemma

Pentawards Gold: Renewable packaging for organic beauty products. Each origami-inspired container consists of a single sheet that is folded and pressed into shape, a tear-off corner reveals a wood twist cap.

NINE is an innovation and design-oriented agency with clear focus on strategic business development and packaging design. BillerudKorsnäs is its principal owner. Its vast experience within fast moving consumer goods has given NINE an in-depth understanding of packaging innovation and a unique position in the market. www.nine.se

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 4 200 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 European News

BillerudKorsnäs has been included in one of the world’s most prestigious sustainability indices; Dow Jones Sustainability Europe Index. In addition, the company was named Sustainability Leader in the Containers & Packaging category. BillerudKorsnäs is the only European company in its category to be included.

billkorlogoBillerudKorsnäs scored particularly high in the field of environment, eg. climate strategy, environmental management system and environmental reporting. Ethical guidelines and supplier management were also given high scores, among others.

“Sustainability is the very basis of our strategy for sustainable and profitable growth. It is no longer enough to minimize your own environmental impact as companies have done in the past, at BillerudKorsnäs we want to take sustainability further. With our resource efficient and innovative packaging solutions we both can and want to make positive contribution to a sustainable future. I am therefore pleased that our work is recognized and acknowledged internationally today by the Dow Jones Sustainability Index”, says Per Lindberg, President and CEO of BillerudKorsnäs.

BillerudKorsnäs sustainability work is focused on three areas: increasing customer value, contributing to a sustainable and bio-based society and responsibility throughout the value chain. For example, BillerudKorsnäs aims to further reduce greenhouse gas emissions from the production, which already today uses 97.6 percent biofuels. Among the company's innovations for increased customer value and use of paper packaging solutions is the cement sack that dissolves when mixed into cement, an airtight standing paper pouch for dry goods like sugar, flour and pasta as well as FibreForm - a mouldable paper with extremely high stretchability.

Dow Jones Sustainability Index describes how the company is performing in key economic, environmental and social areas. Annually 3.400 of the largest listed companies are assessed by RobecoSAM in cooperation with Dow Jones, for more information.

Read more about BillerudKorsnäs’ sustainability.

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 4 200 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

CEO Per Lindberg comments on the development during Q2 2016:

billkorlogo”After a couple of troublesome quarters we are now back on track with production running according to plans. The second quarter performance is in line with our own expectations. During the quarter it was decided to proceed with the investment in Skärblacka. The investment will enable further growth in attractive market segments and at the same time streamline the company’s production structure. The investment program will develop the Skärblacka production unit in Sweden into a world leading center for machine glazed, MG, kraft paper production, hence creating a competitive future platform for Packaging Paper to enable the selective growth strategy”

THE RESULT

Net sales for comparable units increased 2% compared to Q2 last year and year on year net sales show a slight increase of 1%. Adjusted EBITDA for comparable units improved with 3% compared to the first six months last year, in spite of approximately SEK 74 million higher costs for periodic maintenance shutdowns this year. Results improved in both Consumer Board and Corrugated Solutions business areas. The item affecting comparability is related to a fraud case that caused a loss of SEK 25 million in June, this is something we treat very seriously and we work diligently to try to recover the money. Our return on capital employed reached 14% which is above our target and our working capital in relation to sales improved from previous quarter from 12% to 11%. Our net debt to EBITDA ratio increased due to dividend payout to 1.32, but is significantly lower than our target of below 2.5.

MARKET OUTLOOK

Overall the market was stable and we anticipate that to continue.

For Business area Packaging Paper the brown and white sack paper markets strengthened seasonally. The pulp price was down compared to Q2 last year. The remaining segments in Packaging Paper had a stable market development with no changes to local prices.

Consumer Board delivered lower sales volumes than the first six months last year as a consequence of the problems in production in Q4 last year and the previous quarter. But as we now are back on track in production we anticipate that we will reach our growth targets during the second half of the year.

Business area Corrugated Solutions shows a continued strong performance in spite of the fact that the market did not develop as we anticipated during the quarter where liner has been stronger than expected and fluting a bit tougher than anticipated.

STRATEGY

Part of our strategy for creating long-term profitable growth is to expand our position in the value chain as well as geographically. Based on our focus and expertise in the packaging area we want both to develop and complement our sustainable materials with packaging solutions to a larger extent. It is a natural development but also necessary. In new markets, complete solutions are often required in order to introduce new materials.

During the past six months, the former subsidiary PACCESS (now Managed Packaging), with a business model fully based on packaging solutions, was fully integrated into BillerudKorsnäs. Even more recently a complete packaging system was launched together with Bosch. The latter is a unique solution for sealed packaging of dry foods based fully on renewable material. The development toward more packaging solutions is a natural evolution within each business area. In addition there is room for more revolutionary solution development in the newly formed subsidiary BillerudKorsnäs Venture AB.

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 4 200 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 22 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

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