Pulp-Paperworld.com / European News

billkorlogoBillerudKorsnäs has decided on streamlining their production structure through a closure of the paper machine in Tervasaari, Finland, latest during Q3 2016. BillerudKorsnäs will thereby entirely leave the Tervasaari production site. The decision has been made after union negotiations and is based on unsatisfactory profitability levels.

Within BillerudKorsnäs Business Area Packaging Paper, a wide range of kraft papers and packaging solutions are offered for use in food packaging, medical packaging and packaging of construction materials - to mention a few application areas. Under the business area strategy “Selective Growth”, BillerudKorsnäs is taking steps to grow within attractive segments of the packaging paper area and to streamline its production structure.

The BillerudKorsnäs production at Tervasaari consists of one paper machine with a capacity of 100 000 t/a of machine glazed papers, MG papers. The paper machine is unintegrated to pulp production which results in an unfavorable cost position, despite the fact that the machine is among the largest of its kind.

The decision means that the production at the machine will stop latest during Q3 2016.

In August this year, BillerudKorsnäs started a feasibility study investigating among other things the potential of moving the Tervasaari machine to Skärblacka in Sweden. Skärblacka would offer integration to pulp production and, with the Tervasaari machine, Skärblacka would strengthen its position as one of the world's most efficient production units for white MG papers. The investigation is on-going and will be finalized during the first half of 2016.

“The closure of production at Tervasaari is a first step in streamlining our production structure. There is right now intensive work being done in the form of feasibility studies that will lead us in our further development of our production structure. The machine in Tervasaari is one of the largest of its kind and our staff has done a great job to improve profitability through creative ideas and committed efforts but unfortunately this has not been enough due to external factors”, says Christer Simrén, COO and Executive Vice President, BillerudKorsnäs.

The closure will lead to restructuring costs of approximately SEK 100 million. These costs will be included in the reporting for Q3 2015 under “Other units”.

For more information, please contact:

Henrik Essén, SVP Communication and Sustainability, +46 (0)8 553 335 00

The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 11.00 CET, October 15th 2015.

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fiber 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 21 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in European News
Wednesday, 30 September 2015 10:04

Berghs students package life-saving aid for UNICEF

BillerudKorsnäs and UNICEF have set students at Berghs School of Communication an exciting creative challenge – to package an emotion that inspires more people to support UNICEF in its charity work around the world.

billkorlogoBillerudKorsnäs and Berghs School of Communication have been working together since 2010 with the purpose of encouraging students’ creativity and generating interest in packaging solutions among the designers, communicators and decision makers of tomorrow. The collaboration started out as an annual contest and has now developed into an integral part of the full-time Graphic Design and Account Management programmes at Berghs.

This year’s edition of the contest, PACKCHALLENGE:15, will take place during September and October. Students at Berghs are now facing an exciting creative challenge – how can you best package an emotion that inspires more people to help UNICEF in its charity work around the world?

UNICEF’s mission is to reinforce children’s rights. Its work is financed entirely through voluntary contributions from private individuals and companies. One way of raising funds is to sell what are known as field products, such as vaccines, water purification tablets, school materials and mosquito nets.

The products are sold online and through shops in connection with specific campaigns. In recognition for their contribution, donors receive a gift card that they can then choose to give away as a Christmas or birthday present. The students’ assignment is to come up with a packaging solution that communicates the benefits of giving, how the money is used and encourages support of UNICEF.

The solution will:

-           Be simple to understand and easy to buy.

-           Give the sense that it contains something tangible.

-           Be suitable for different types of shops.

-           Feel good to buy and valuable to receive.

-           Be relevant throughout the year.

-           Be fibre-based to some extent.

-           Be cost-effective to produce and distribute.

Innovation and the use of new technology will be rewarded, provided that it adds value and is relevant.

The students are required to present their solutions on 29 October.

“Berghs School of Communication is one of the best communication schools in the world. This partnership is very important as it provides us with a valuable injection of new ideas while giving students insight into the packaging challenges of tomorrow. Supporting UNICEF’s work feels worthwhile and extremely relevant,” says Jimmy Nyström, Business Development Director, BillerudKorsnäs.

“UNICEF has a long history of working in innovative ways where we use new technologies and materials to increase the effectiveness of our field work and reach out to vulnerable children the world over. Our organisation is completely dependent on voluntary contributions, which is why it is equally important for us to find innovative ways to increase donations. PACKCHALLENGE is a fantastic initiative and we’re really looking forward to the results of the students’ work,” says Andreas Eriksson, Director of Communication, UNICEF Sweden.

Berghs School of Communication was named Cannes Future Lions School of the Year in 2009, 2010, 2014 and 2015.

Read more about PACKCHALLENGE:15 at www.packchallenge.se

For further information, please contact:

Ingeborg Ekblom, Director of PR, UNICEF Sweden, +46 (0)70 995 59 16, ingeborg.ekblom@unicef.se

Pål Pettersson, Programme Director Communication Design/Graphic Design, Berghs School of Communication, +46 (0)70 254 02 39, pal.pettersson@berghs.se

Thea Tyvi, Course Director, Berghs School of Communication, +46 (0)70 529 66 32, thea@tyvi.se

Jimmy Nyström, Business Development Director, BillerudKorsnäs, +46 (0)70 383 24 42 jimmy.nystrom@billerudkorsnas.com

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fiber 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 21 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in European News

billkorlogoThe demand for sustainable packaging solutions is growing globally. BillerudKorsnäs wants to explore the opportunities to respond to the demand growth while at the same time streamline and further improve its production structure. The company is now launching two feasibility studies, one regarding investment into a new board machine at the production site in Gruvön, Sweden, and the other regarding a streamlining and development of the production structure for packaging papers.

BillerudKorsnäs is a leading supplier of renewable fiber based packaging materials and solutions. Within liquid packaging board and other virgin fiber cartonboard, the company is one of the world leaders. Driven by global megatrends, the demand for these types of board is increasing. BillerudKorsnäs therefore wants to investigate the possibility of installing a new board machine at the production unit in Gruvön. The investigation is a part of BillerudKorsnäs strategy for volume growth within business area Consumer Board. It is also in line with the strategies for the business areas Containerboard and Packaging Paper. The machine would become one of the most cost efficient in the world with a capacity of approximately 500 000 t/a of liquid packaging board, cartonboard, food service board and white kraftliner. In addition to growth in attractive board segments, an investment decision would also include a streamlining of the production structure within the business area Packaging Paper as the current production of kraft papers at the Gruvön production unit would be discontinued and replaced by production at other BillerudKorsnäs units. A potential investment decision can be made at the earliest during 2016.

Simultaneously, BillerudKorsnäs is launching an investigation into the possibilities of further structural change and growth in selected attractive kraft paper segments. The investigation includes exploring the possibility of moving the MG paper machine in Finnish Tervasaari, unintegrated to pulp production, to Swedish Skärblacka, which is an integrated unit. The investigation also includes investment in further value adding surface treatment capacity at existing MG paper production in Skärblacka. If implemented, the investments would strengthen Skärblacka’s position as one of the world's most efficient production units for white MG papers while also opening up opportunities in attractive market segments within medical papers, food packaging and release liners. The investigation will be completed during the first half of 2016 and after a potential decision is taken about a year is required to carry out the investment in surface treatment capacity and one and a half years for a potential paper machine move.

“These two investigations clearly indicate that we have our sights set on growth. We carefully compare all different growth scenarios to each other. Right now, we consider conditions for organic, investment driven, growth in our own production structure as the most favorable. These investigations do not exclude the possibility of further acquisitions”, says Per Lindberg, President and CEO, BillerudKorsnäs.

The investigations are independent of each other. Also independent of the outcome of the investigations, BillerudKorsnäs invites to union negotiations regarding a possible closure of the BillerudKorsnäs production at Tervasaari.

For more information, please contact:

Per Lindberg, President and CEO, +46 (0)8 553 335 00

Henrik Essén, SVP Communication and Sustainability, +46 (0)8 553 335 00

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fiber 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 21 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in European News

CEO Per Lindberg comments on the development during Q2 2015:

billkorlogo“We deliver a result for the quarter that is strong, but burdened with extra costs for the upgrade of our fluting machine in Gruvön. Technically, the upgrade is a success and the quality improvements are above expectations, but it took a bit longer to implement than estimated.”

THE RESULT

The second quarter’s operating margin of 10% was negatively impacted by the planned maintenance shutdown and the extra costs for implementation of the upgrade of the fluting machine in Gruvön, all in all approximately SEK 170 million. I am however content with the underlying result we produce. Overall the weak SEK continues to be positive for us. Our growth 2015 is largely driven by favourable currency developments, and our volumes have suffered partly due to investments and rebuilds. We have given priority to longer-term capacity enhancements rather than short term volume maximizations.  Still our volume growth in business area Consumer Board for the first half of the year was 6% and above the plan.
Our net debt/equity ratio increased to 0.62 due to our dividend pay-out. Return on capital employed improved to 12% and we continue to close in on our targeted 13%, so overall we are performing well in line with our targets.

MARKET OUTLOOK

The overall market has been stable during the quarter. We expect the market to continue to be stable with good demand and little changes in local prices.

We see no reason to change our outlook for business area Packaging Paper. Increased competition pressures local prices within the MF segment and we did not utilise our full capacity during the quarter. This situation was anticipated and is likely to continue. Meanwhile the market situation for sack paper and the MG segments are solid which makes the outlook for the business area quite stable and balanced.

Consumer Board market continues to be stable.

Within Containerboard, the fluting segment is currently very strong, with strong order books and with previously announced local price increases starting to show. We are also expecting the improved product quality from the machine upgrade to support additional value growth in the business area in the longer-term. In the liner segment, competition continues to increase with increased capacity on the market. But local prices have been kept stable during the quarter, helped by low stocks, announced price increases for waste based papers, and a strong USD that favours European kraftliner.

STRATEGY

One of our strategic stepping stones is to expand our position both in the value chain as well as geographically. We want to expand our offering and our networks to include stakeholders beyond converters, for instance brand owners.

In our efforts to achieve our ambitions in this area it is worth mentioning that our JV, FibreForm Packaging, has taken its first order where a complete system solution has been sold containing a FreeFormPack machine with deliveries of FibreForm material to one of Europe’s largest co-packer, Vetipack.

When it comes to geographical expansion our goal is that more than 50% of our future growth will come from outside of Europe. Here we have finalised establishment of companies in India and USA and they are fully operational. We are also finalising the set-up of a company and a complete customer service center in Singapore.

The information is such that BillerudKorsnäs AB (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 10.02 CET, 20 July 2015.

For further information, please contact:
Per Lindberg, President and CEO 46 (0)8 553 335 00

Susanne Lithander, CFO, 46 (0)8 553 335 00

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fiber 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 21 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in financial News

BillerudKorsnäs launches an engaging digital campaign -  Clarifies mission to challenge the conventional for a sustainable future

Leading provider of packaging solutions and materials, BillerudKorsnäs, unveils its first ever brand campaign today. The brand campaign will primarily target customers and customers’ customers in an aim to elucidate the company’s mission, increase brand awareness, boost brand preference and position the brand forward in the value chain.

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 “It has been two and a half years since BillerudKorsnäs was formed and we are now ready to communicate our brand mission more explicitly than we have done so far. We have evolved from Billlerud and Korsnäs, two paper and board manufacturing companies, into a materials and solutions provider to brand owners and retailers”, says Per Lindberg, CEO BillerudKorsnäs.

The campaign will use stories, articles, cases and insights to illustrate the essence of the company’s mission. The notion of challenging the conventional for a sustainable future entails both an ambitious innovation agenda as well as a strengthened sustainability commitment, themes which will be central to the campaign.

 “We want the audience to associate us with fresh thinking and smarter packaging solutions with economic and sustainability advantages. We believe that the best way to do so is to show what we have achieved and realized over the past couple of years, as well as to give the audience a flavour of what we have on our agenda”, says Peter Malmqvist, Marketing Director, BillerudKorsnäs.

The hub of the campaign will be an interactive digital platform where brand ambassadors will be free to share content in their own channels.

“We will be able to engage industry professionals and the general public in a way that we never have done before. Anyone who is moved by what we say can simply click, post, share and comment via social media”, says Peter Malmqvist.

To take part of the BillerudKorsnäs brand campaign, please visit the campaign site, which will be live from the 7th of May until August 2015.

For more information, please contact:

Peter Malmqvist, Marketing Director, BillerudKorsnäs,

+46 72 210 62 45, peter.malmqvist@billerudkorsnas.com

www.billerudkorsnas.com

www.challengeconventional.com

BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fiber based packaging materials and have customers in over 100 countries. The company has 8 production sites in Sweden, Finland and the UK and about 4200 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 21 billion and is listed on Nasdaq Stockholm.

Published in European News

CEO Per Lindberg comments on the development during Q1 2015:

“We are proud to report our best quarter so far in our short history as BillerudKorsnäs. Our operating profit in the quarter reached a level of SEK 698 million and the operating margin was over 12%.”

THE RESULT

billkorlogoThe financial performance for the first quarter this year was very strong. On top of a very strong operating result, our operating cash flow was excellent, SEK 733 million, and we have further improved our net debt/equity ratio which is now down to 0.57. Return on capital employed is improving and closing in on our 13% target, but still rounded to 11% and hence we are above all our financial targets except ROCE. Of course, no planned maintenance shutdowns and a weakened SEK had a significant positive impact on the quarter, but I am still very pleased. The one area where we in Q1 fall a little short is volume growth as compared to last year. But keeping in mind that the beginning of last year was exceptional and that production and delivery volume ramp-up rarely is linear, I am still confident in our ability to reach our longer-term growth targets.

MARKET OUTLOOK

The overall market has been stable during the quarter. We expect the stability to continue with quite good demand and little changes in local prices. The pulp price in USD seems to have peaked, but the relative strength of the USD versus other currencies have compensated for the USD nominated price fall.

The relatively high pulp price contributes both to stability and to our own profitability. However, the high pulp cost pressures unintegrated production capacity in the Euro-zone and Sweden. We also see some competitors being forced to take action due to profit squeeze. Meanwhile, and on the balance, we now have a slightly more positive market outlook for our business areas Packaging Paper and Containerboard than we previously expected, whereas the Consumer Board market continues to be stable.

Looking in further detail we can see that within the MF segment in Packaging Paper increased competition pressures local prices and we have not been able to utilise our full capacity during the quarter. This was expected and will most likely continue. On the other hand, the brown sack paper segment shows strength and is trending more positively than expected. Within Containerboard, the fluting segment is currently very strong, with strong order books and we may be looking at price hikes during Q2. In the liner segment competition continues to increase with increased capacity on the market. Even if prices have been kept quite stable during the quarter, white liner continues to be somewhat of a concern.

STRATEGY

I feel that we have prepared the company well both financially and operationally to be ready to take an additional step towards becoming the leading player in the primary fibre packaging market. Our mid-term strategic target is to grow the company organically with 3-4% per year until 2018. This requires debottleneck investments, and several decisions have already been made and I expect more to come. Looking beyond mere organic growth, we have by now strengthened our balance sheet enough to also consider additional growth by acquisitions or significant investments. However, shareholder value will not be compromised and any such step will be subject to utmost scrutiny.

Our mission is to challenge conventional packaging for a sustainable future. In order to emphasize the importance of sustainability we are partnering with the Tara expedition. We share the vision of a future where plastics floating in the oceans are a memory only, and what brings us together is that we constantly seek new answers to sustainability challenges. We want to be active in driving the development towards a more sustainable future, and several lessons from this cooperation will be fed into our own product development.

For further information, please contact:
Per Lindberg, President and CEO 46 (0)8 553 335 00
Susanne Lithander, CFO, 46 (0)8 553 335 00

BillerudKorsnäs – Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. BillerudKorsnäs has a world-leading market position within primary fibre-based packaging paper. The company has annual sales of around SEK 21billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com

Published in financial News

CEO Per Lindberg comments on the development during Q4 2014:

billkorlogo“We end the year with another stable quarter. The operating profit level of SEK 460 million is good considering the short delivery month of December and some unexpected hick-ups in the production, of course helped by the weakened SEK. During 2014 we reached all time high volumes, in line with our growth plans. We are starting to see that our efforts to reduce working capital are paying off and we have a working capital level that has decreased substantially in spite of increased net sales. Our net debt/equity ratio is down to 0.67.

The overall market for our business has been stable but as expected a bit slow. We did not run full capacity for Packaging Paper due to seasonally lower demand during the fourth quarter. Containerboard market remained under pressure on the liner side due to the increased capacity on the market. The Consumer Board market was stable.

During the quarter we have announced investments in the production unit in Skärblacka that support Packaging Paper in their selective growth strategy. The investment of SEK 260 million will increase quality and volume of brown sack paper where we see good growth potentials.

Finally to sum up the year, we have delivered what we have promised. We reached our synergy targets ahead of plan. We are on track to reach our growth targets. We have developed a strong and stable platform for the future and I believe we have proven the brilliance in merging the two companies.’’

  The information is such that BillerudKorsnäs AB (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 07.02 CET, 3 february 2015.

For further information, please contact:
Per Lindberg, President and CEO 46 (0)8 553 335 00

Susanne Lithander, CFO, 46 (0)8 553 335 00

BillerudKorsnäs – Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. BillerudKorsnäs has a world-leading market position within primary fibre-based packaging paper. The company has annual sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm. www.billerudkorsnas.com
Published in financial News

A pop-up store made from BillerudKorsnäs material and designed for use in petrol stations has won the top prize when students from Berghs School of Communication competed to package the digital music service Spotify.

Throughout autumn, students at Berghs School of Communication have been participating in a contest to find the best analogue packaging solution for the digital music service Spotify. The competition, dubbed SPICE:14, was held across September and October in partnership between Berghs, Spotify and BillerudKorsnäs.

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Road Trip winner
A total of 12 teams participated in the event, each presenting Spotify with two solutions to make a total of 24 entries. The winning concept is called Spotify Road Trip and centres on a pop-up store that can be placed in petrol stations. The idea behind the concept was to exploit the fact that petrol stations are not simply places to refuel, but also environments where customers purchase items to make their car journeys more pleasant.

The team behind the winning concept comprises project managers Sofia Göthlin and Richard Holmquist and graphic designers Sofie Redtzer and Malin Strömblad.

"We were a bit puzzled by the brief," says Holmquist. "How could we make a physical packaging for a digital service? It really forced us to think outside the box."

Benefits for Spotify and BillerudKorsnäs

According to the prize jury, the winning concept shows a clear understanding of users and of the target audience’s emotional drives. It also embodies direct problem-solving and simple distribution, while completely meeting the brief.

Jenny Hermansson is Business Director at Spotify and a member of the jury.

"The winning concept has a clear understanding and a good idea," she says. "We believe in the target group and the concept is nicely packaged. It was also a fierce competition with lots of very good ideas. I’m confident that we will be able to realise a number of the concepts and we are very pleased with the competition."

The competition was run by Jimmy Nyström, Business Development Director, BillerudKorsnäs and Jon Haag, Corporate Innovation Manager, BillerudKorsnäs.

"As managers for the project, we think this year’s competition has reached an entirely new level. The students have worked really hard for six weeks and are presenting concepts that are fully up to the standard of what’s provided by creative agencies. We’re impressed!"

This year’s SPICE:14 competition was the fifth to be held, and it has expanded from a competition for Berghs student to being an integrated part of the Sustainable Packaging Design class at the school.

Read more about SPICE:14 at www.spice14.com

For more information, please contact:

Jon Haag, Corporate Innovation Manager, BillerudKorsnäs

+46 702072557, jon.haag@billerudkorsnas.com

Jimmy Nyström, Business Development Director, BillerudKorsnäs

+46 703832442 jimmy.nystrom@billerudkorsnas.com

Pål Pettersson, Head of Graphic Design, Berghs School of Communication.

+46 792540239, pal.pettersson@berghs.se

billkorlogoBillerudKorsnäs provides high quality paper and state of the art packaging expertise. Together with our global network of converters we develop smarter packaging solutions that save costs, boost brands thanks to improved design, and contribute towards smoother logistics and a cleaner environment. We have a turnover of SEK20 billion and employ 4,300 people in 13 countries.’www.billerudkorsnas.com

Published in European News

billkorlogoBillerudKorsnäs continues to act according to their growth agenda. This time with an investment of SEK 260 million at their production unit in Skärblacka that will increase the volume and improve the quality of sack papers produced there.

The BillerudKorsnäs Board of Directors has approved a SEK 260 million investment for sack paper machine 9 at the Skärblacka production unit. The investment will further add to the quality leadership of the BillerudKorsnäs sack paper range and will also increase the capacity of the machine by 20 000 t/a up to 180 000 t/a. The investment is a part of the growth agenda Selective Growth for BillerudKorsnäs Business Area Packaging Paper.

Paper machine 9 produces high quality brown sack papers that are used for the construction of sacks primarily for packaging of cement, other construction minerals and chemicals. Most of these papers are sold in emerging markets outside of Europe.

- We see strong potential for our sack papers in South East Asia, where our sack paper brand QuickFill is a quality leader. In those regions, cement and other construction minerals are very often packed in plastic sacks. Sacks made out of our material offer the brand owner large benefits when it comes to production economy, but also when it comes to sustainability and health – says Johan Nellbeck, SVP Packaging Paper.

The investment includes the head box and wire section of the paper machine and it will be carried out during 2015. For BillerudKorsnäs, the investment is an outcome of the asset review that has been conducted. It is an important step in the development of the Skärblacka production unit and follows after successful investments in energy and environment since 2012.

As previously communicated, the BillerudKorsnäs capex levels for 2015 and 2016 will be above the depreciation level.

For further information, please contact:

Johan Nellbeck, SVP Packaging Paper, +46 8 553 335 00
Henrik Essén, SVP Communication and Sustainability, +46 8 553 335 00

BillerudKorsnäs – Förpackningstillverkare och varumärkesägare erbjuds mervärde i form av varumärkesförstärkande, produktivitetshöjande och miljöbefrämjande förpackningslösningar. BillerudKorsnäs har en världsledande marknadsposition inom nyfiberbaserade förpackningsmaterial. Bolaget omsätter ca SEK 20 miljarder och är noterat på NASDAQ OMX Stockholm. www.billerudkorsnas.se

Published in European News
Thursday, 28 August 2014 09:43

BillerudKorsnäs invests for growth

billkorlogoA new investment makes the board machine in Frövi the largest of its kind in the world. The investment is a concrete example of BillerudKorsnäs ambitious growth agenda.

The BillerudKorsnäs Board of Directors has today approved an investment of approximately SEK 900 million in the Frövi and Rockhammar mills. The investment targets increased capacity and improved quality of the output cartonboard and liquid packaging board. 

  • We have set an ambitious growth agenda for BillerudKorsnäs. For the business area Consumer Board the strategy is profitable volume growth. This investment is an important part of realising that strategy. – says Per Lindberg, CEO of BillerudKorsnäs .

The investment includes a rebuild of the board machine at the Frövi mill as well as a capacity upgrade of the Rockhammar pulp mill. After completion in 2017, the investment will bring the Frövi mill to an output of 550 000 t/a of high quality cartonboard and liquid packaging board and the Rockhammar mill up to 150 000 t/a of CTMP. After the investment, BillerudKorsnäs will operate the largest machine for production of cartonboard and liquid packaging board integrated to chemical pulp in the world.

  • The demand for BillerudKorsnäs cartonboard and liquid packaging board is increasing. Through this investment we will maintain and strengthen our competitiveness and deliver on the increasing demands on our products and services, and thereby achieve sustainable growth within our business area Consumer Board. – says Ulf Eliasson, Senior Vice President Consumer Board

BillerudKorsnäs long term estimate for capital expenditure is for capex to be in line with depreciation i.e. approximately SEK 1400 million per year. The Frövi and Rockhammar investments imply that BillerudKorsnäs will exceed previous guidance for capex with approximately SEK 150 million for 2014 and that the capex level will be above the depreciations also for the coming two years.

Additional Info

  • About

    BillerudKorsnäs provides high quality paper and state of the art packaging expertise. Together with our global network of converters we develop smarter packaging solutions that save costs, boost brands thanks to improved design, and contribute towards smoother logistics and a cleaner environment. We have a turnover of SEK20 billion and employ 4,300 people in 13 countries.’www.billerudkorsnas.com

  • Contacts

    For further information, please contact:

    Per Lindberg, President and CEO, +46 8 553 335 00
    Ulf Eliasson, SVP Consumer Board, + 46 26 15 10 00

Published in financial News
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