Pulp-Paperworld.com / European News

billkorlogoBillerudKorsnäs has investigated the conditions for pyrolysis oil production from forestry residues at the Skärblacka pulp and paper mill. The project was granted EU support within the framework of the NER300 programme in December 2012.

The BillerudKorsnäs investigation has shown that there are technical solutions at hand for the production of pyrolysis oil but that the commercial environment at current conditions, and as assumed in the short to mid-term future development, is not solid enough. BillerudKorsnäs has therefore decided to discontinue the pre-study in its current form.

“We are naturally not happy with having to discontinue a project that we have believed in, but the experience learned is extensive. We will continue to monitor development in these issues and we are ready to act on business opportunities if the conditions would change. We remain committed to our growth agenda in our core markets and to our focus towards smarter packaging solutions.” comments Per Lindberg, CEO of BillerudKorsnäs AB.

Additional Info

  • About

    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

  • Contacts

    For further information, please contact:

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

    Magnus Wikström, SVP Strategic Development, +46-8-553 335 27, +46-70-633 78 66

Published in European News
Monday, 09 December 2013 11:00

Changes in ownership in BillerudKorsnäs

billkorlogonvestment AB Kinnevik today announced that they have divested its shareholding of 25.1% in BillerudKorsnäs to certain Swedish institutions including AMF Försäkring, Fjärde AP Fonden and Alecta. As a result of the transaction, FRAPAG Beteiligungsholding AG is now the largest shareholder in BillerudKorsnäs with 15.5% of the votes.

“We are pleased to see that there is a significant interest in the BillerudKorsnäs share and that the long-term institutional shareholder base is now further increased as a result of the transactions that were announced today. At BillerudKorsnäs, we will continue our dedicated work with implementing the right strategies in each of our different market segments to achieve a healthy level of sustainable growth and at the same time create long-term shareholder value”, says Hannu Ryöppönen, Chairman of the Board of BillerudKorsnäs.

Additional Info

  • Contacts

    For further information, please contact:

    Hannu Ryöppönen, Chairman of the Board of Directors, +44 7788 882627 or +46 (0)8 553 335 05

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

    Submitted for publication at 9.45 CET, December 9, 2013

Published in European News

billkorlogoAt its Capital Market Days, held on 14-15 November, BillerudKorsnäs presented a clear focus on profitable growth in its various business areas over the years going forward. To meet these expectations, the composition of the Group’s Senior Management Team (SMT) will change somewhat. At the same time an Extended Management Team (EMT) will be established, with a continued focus on integration and coordination of production/market.

Ulf Eliasson will take up the post of SVP Consumer Board, and Christer Simrén, who formerly headed both Consumer Board and Operations, will therefore focus exclusively on the responsibilities of COO and Operations. As Ulf Eliasson takes over as SVP Consumer Board, Magnus Kangas will become Mill Manager at Gävle. In addition, Henrik Essen will assume the role of SVP Communications and Sustainability. SMT will therefore consist of the following members:

President and CEO Per Lindberg, COO Christer Simrén, CFO Susanne Lithander, SVP Consumer Board Ulf Eliasson, SVP Containerboard Lennart Eberleh, SVP Packaging Paper Johan Nellbeck, SVP HR Karin Hågfeldt, SVP Communication and Sustainability Henrik Essén, SVP Forestry Uno Brinnen and SVP Strategic Development Magnus Wikström.

EMT will comprise the members of SMT, VP Business Support, VP Supply Chain, VP Operational Excellence and the Mill Managers for Finland, Frövi, Gruvön, Gävle, Skärblacka and Karlsborg.

All changes will take effect on 1 December 2013.

Additional Info

  • About

    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

  • Contacts

    For further information, please contact:

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

Published in European News

billkorlogoBillerudKorsnäs has hosted its first Capital Markets Day (CMD) in Stockholm. The theme is “Delivering sustainable profitable growth”. The Group’s target is to achieve an organic growth rate of 15-20% by 2018.

BillerudKorsnäs’ strategic focus is to be at the forefront of development in primary fibre-based packaging materials, with the overall objective of generating sustainable profitable growth. This will be achieved from the three core businesses:

• Containerboard Business Area – value growth i.e. increasing margins on the existing product portfolio, with a CAGR target of 2-4%

• Packaging Paper Business Area – selective growth i.e. targeting growth in selected segments and balancing additional capacity, with a CAGR target of 0-4%

• Consumer Board Business Area – volume growth i.e. increasing volume in key markets, with a CAGR target of 4-5%

per lindberg ppwPer Lindberg, CEO and President of BillerudKorsnäs, comments ”BillerudKorsnäs is well positioned to build on attractive opportunities within the primary-fibre based packaging market. I am confident that by implementing the right strategies in each of our different market segments we can achieve a healthy level of sustainable growth and at the same time create long-term shareholder value. Innovation is a key organic growth driver and is at heart of our skill set.”

The Group’s financial targets remain in line with those stated previously. “We are committed to a dividend policy of paying 50% of net profit over the business cycle. Short term, our focus is on restoring margins and paying down debt, while mid-term it is to achieve profitable growth. Longer-term our ambition is to find an optimal long-term capital structure, with a return on capital employed target exceeding 13%”, says Per Lindberg.

At around 13.00 CET the CMD presentations will be available on the BillerudKorsnäs website http://www.billerudkorsnas.com/Investor-Relations/Capital-Markets-Day-2013/. The CMD can be followed on a live webcast on the same website.

Additional Info

  • About

    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

  • Contacts

    For further information, please contact:
    Per Lindberg, President and CEO +46 (0)8 553 335 00
    Sophie Arnius, Investor Relations, Media & PR Director, +46 (0)70 590 80 72

    The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 11.45 CET, 14 November 2013.

Published in financial News
Wednesday, 30 October 2013 10:00

On track to reach synergy targets ahead of plan

billkorlogoCEO Per Lindberg comments on the development during Q3 2013:

“Third quarter’s results show a stable performance. Our adjusted operating profit reached SEK 331 million corresponding to an adjusted operating margin of 7% which, taking the negative impact from the planned maintenance shutdowns into consideration is satisfactory.

The quarter has been very eventful in our production units with two planned maintenance shutdowns in Karlsborg and Skärblacka. After some delay in Skärblacka in connection with the major rebuild, all machines are now up and running again and performing as planned. 

During the quarter, we have agreed on new long-term contracts with all major customers for liquid packaging board, which will contribute to long-term stability of demand. In general, however, the European market currently continues sideways, without strong signs of improvement. We therefore strengthen our efforts to increase sales outside Europe in markets with more healthy demand and we re-allocate resources from Europe to these areas.  

The Board of Directors have approved an investment in one of the board machines in Gävle amounting to approximately SEK 220 million. The purpose of the investment is to increase machine capacity with approximately 10% to support further growth within the attractive liquid packaging board market. The investment will also improve both cost efficiency and product quality and the rebuild will take place during the planned maintenance shutdown next year.

During the quarter the remaining 70% of the shares in PACCESS Packaging LLC in the US were acquired. This is strengthening BillerudKorsnäs’ position to bring smarter packaging solutions to brand owners and is a further step in challenging conventional packaging.

The integration efforts are progressing relentlessly and I am pleased to end on the note that we now have realised synergies corresponding to an annual pace of approximately SEK 300 million. The synergy targets are expected to be reached approximately a year ahead of plan during 2014.

Finally, I just want to remind you of our Capital Markets Day on 14 November 2013, in Stockholm. I hope to meet many of you there.”

Additional Info

  • About

    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

  • Contacts

    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
    Sophie Arnius, Investor Relations & Financial Media Director, +46 (0)70 590 80 72

Published in financial News

billkorlogoBillerudKorsnäs’ divestment of paper machine PM2 at the Group’s Gävle production unit, to SwedPaper AB, has been approved by the appropriate competition authorities and the transaction has now been completed.

The transaction fulfils the requirement set by the European Commission for approval of the combination between Billerud and Korsnäs, and PM2 at the Gävle unit has now been divested to SwedPaper. Other operations at the Gävle production unit will not be affected by the sale and will remain unchanged in BillerudKorsnäs’ ownership.

Following the divestment, BillerudKorsnäs will, for example, supply input items such as pulp, steam and water to SwedPaper. BillerudKorsnäs will sell to SwedPaper an annual volume of pulp amounting to a maximum of 66 000 tons. Pricing for the pulp will be in line with the market. As of 1 August 2013, sales of pulp to PM2 will be accounted for in the Packaging Paper Business Area. Before the divestment, the operations of PM2 had been accounted for at BillerudKorsnäs under Other units.

The divestment was described previously in press releases dated 6 May 2013 and 12 June 2013

Additional Info

  • About

    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

  • Contacts

    For further information, please contact:
    Christer Simrén, Vice President and COO, +46 (0)70 795 11 10
    Ulf Eliasson, Mill Manager, BillerudKorsnäs Gävle, +46 (0)26 15 10 00
    Sophie Arnius, Investor Relations & Financial Media Director, +46 (0)8 553 335 24 or +46 (0)70 590 80 72

Published in European News

CEO Per Lindberg comments on the development during Q2 2013:  

billkorlogo“We continue to focus on integration and to create the new BillerudKorsnäs. I am therefore first and foremost very pleased to see that we have realised synergies corresponding to an annual pace of approximately SEK 260 million, which takes us almost half way to our target of SEK 530 million. This means that integration is making good progress. We have also received approval from the EU Commission to sell PM2 in Gävle to SwedPaper and we expect closing on 1 August, thus fulfilling the formal requirements from the authorities concerning our acquisition of Korsnäs.

As already communicated our adjusted operating profit for the second quarter of SEK 318 million fell short of expectations primarily due to start-up problems after the rebuild of the board machine KM5 in Frövi. The cost for the rebuild became almost SEK 50 million higher than expected, but it is not uncommon that this happens in connection with such a large remodelling. We now have created a platform for higher capacity and increased quality. I am also pleased to see that production now has stabilised and is in line with expectations.

We have noted varying market conditions during the second quarter. In short, the European demand in some segments is still treading water, which in combination with overcapacity is putting pressure on some European segments. We will therefore actively pursue sales outside of Europe in the medium- to long term.

During the quarter, our new communication platform was launched. We view ourselves as challengers, where we challenge conventional packaging for a sustainable future. Our target remains to deliver smarter packaging, both through better materials as well as better solutions. Smarter packaging adds value at every step of the value chain; attracting consumers, increasing productivity, lowering cost of transportation, reducing waste and not the least lowering environmental impact.

We therefore continue to be very optimistic about the future prospects for BillerudKorsnäs. We will share more of our views at our Capital Markets Day planned for 14 November 2013, in Stockholm. I look forward to meeting you there! More information about the event will be posted on www.billerudkorsnas.com.”

Additional Info

  • About

    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

  • Contacts

    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
    Sophie Arnius, Investor Relations & Financial Media Director, +46 (0)70 590 80 72

Published in European News

billkorlogoBillerudKorsnäs second quarter results are negatively impacted by production problems in June in conjunction with the start-up of KM5 in Frövi after extensive remodeling. Earnings are also impacted by higher non-recurring integration costs and restructuring. Operating profit for the second quarter of 2013 will amount to approximately SEK 255 million and adjusted for non-recurring items operating profit will amount to approximately SEK 318 million

"We have done extensive remodeling of KM5 in Frövi with two weeks of downtime where we have created a platform for capacity expansion of 30 Ktonnes per year to 450 Ktonnes per year and improved product quality. At the start-up in June, we were hit by a number of unpredictable disruptions and complications. However, it is not uncommon that this happens in connection with such a large rebuild. Production has stabilized and is currently in line with expectations, although some minor planned adjustments remain. Although our quarterly results, especially in the latter part of June, has been charged with a number of events and one-off costs, the underlying operational performance of the Group remains stable. Our view of the future possibilities have not changed and we are very positive about the future of BillerudKorsnäs "says Per Lindberg, President & CEO.

The periodic maintenance shutdown in Frövi with subsequent complications have had a total negative impact of about SEK115 million on operating profit for the second quarter compared with the first quarter.

The company also had higher non-recurring costs of integration and restructuring of SEK 36 million compared to the first quarter. SEK 24 million due to timing of integration costs and SEK12 million due to restructuring costs in Karlsborg for cost-cutting measures in the form of shift rescheduling. The assessment totaling about SEK 200 million in integration costs for 2013 and the first half of 2014 are not affected. The costs in Karlsborg are not related to integration and will consequently be in addition.

BillerudKorsnäs adjusted operating profit for the second quarter of 2013 is expected to amount to approximately SEK 318 million. Non-recurring costs are estimated to approximately SEK 63 million and reported operating profit is expected to amount to approximately SEK 255 million. The results are still preliminary and have not been reviewed by the auditors.

Additional Info

  • About

    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

  • Contacts

    For more information, please contact:
    Susanne Lithander, Chief Financial Officer +46 (0) 8 553 335 00

Published in European News

billkorlogoMetso will supply BillerudKorsnäs with a cooking plant rebuild, a brown stock washing plant and a screening plant for its mill in Gruvön, Sweden. The start-up of the rebuilt cooking plant and brown stock washing plant is planned for May 2014 and that of the screening plant for May 2015. The value of the order will not be disclosed.

"The rebuilt cooking plant together with the new brown stock washing plant will more efficiently utilize the wood raw material and lower the chemical consumption in the pulping process. In addition the cooking plant rebuild and the new screening plant will substantially lower the energy consumption within the process area," says Alf Sondell, Production Manager at BillerudKorsnäs, Gruvön mill.

The order is included in Metso's Pulp, Paper and Power second quarter 2013 orders received.

Technical information

Metso's scope of supply will include a rebuild of the existing cooking plant to feature a CompactCooking G2 digester. The delivery will also comprise a new ImpBin chip impregnation system, a new pressure diffuser and a screening plant.

BillerudKorsnäs was formed in 2012 and it has eight production facilities and sales offices in ten countries with about 4,400 employees. The Gruvön mill in Sweden has a production capacity of 685,000 tons/year and it produces kraft paper, sack paper, container board (fluting, liner), liquid carton board, cupstock and market pulp.

Metso's pulp, paper and power professionals specialize in processes, machinery, equipment, services, paper machine clothing and filter fabrics. Our offering and experience cover the entire process life cycle including new production lines, rebuilds and services.

 

Additional Info

  • About

    As of January 2014, Metso's Pulp, Paper and Power business will serve its customers with an even more focused and competitive approach as an independent, listed company, Valmet Corporation*.

    *Pending Metso EGM approval.

    www.metso.com/pulpandpaper, www.metso.com/energy
    www.twitter.com/metsopulppaper, www.twitter.com/metsoenergy

    Metso is a global supplier of technology and services to customers in the process industries, including mining, construction, pulp and paper, power, and oil and gas. Our 30,000 professionals based in over 50 countries contribute to sustainability and deliver profitability to customers worldwide. Metso’s shares are listed on the NASDAQ OMX Helsinki Ltd.
    www.metso.com, www.twitter.com/metsogroup

  • Contacts

    For further information, please contact:
    Patrik Lidbäck, Sales Manager, Fiber business line, Metso, tel. +46 70 715 47 23

    Hans Olsson, Vice President, Sales, Fiber business line, Metso, tel. +46 70 683 66 19

Published in European News

BillerudKorsnäs’ financial calendar for 2014 will be as follows:

Year-end report 2013                                                       18 February 2014

Interim report January-March 2014                                     24 April 2014

Interim report January-June 2014                                       21 July 2014

Interim report January-September 2014                              28 October 2014

The Annual General Meeting will be held on 6 May 2014.

The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 08.00 CET, 20 June 2013.

Additional Info

  • About

    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

  • Contacts

    For further information, please contact:

    Sophie Arnius, Investor Relations & Financial Media Director, +46 8 553 335 24, +46 70 590 80 72

Published in financial News
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