Displaying items by tag: BillerudKorsnäs

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

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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

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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.

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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

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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. 

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"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.

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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.

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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

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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

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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.

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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

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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

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