Displaying items by tag: korsnäs Gävle

The Commission has decided to finance commercially-viable and innovative production facilities to expand the use of renewable energy sources and reduce CO2emissions. BillerudKorsnäs’ project on the production of green oil from forestry residues has been allocated funds within the scope of this initiative.

The aim of the project is to extract green oil from forestry residues such as branches, tops and stumps. The project is based on the idea of producing a new type of commercial fuel at a full-scale facility at Skärblacka Mill.

“We are delighted at the EU’s affirmative response to this forward-looking venture. On the basis of this positive decision, we will now continue with our project planning and I anticipate news on the way ahead in 2013”, says Per Lindberg, President and CEO, BillerudKorsnäs.

BillerudKorsnäs is engaged in discussion with joint venture partners who are interested in a future supply of green oil from forest raw materials.

The combination of Billerud and Korsnäs was completed today 29th Nov 2012. The new company BillerudKorsnäs will be a leading player in primary fibre-based packaging material and solutions. In connection with the combination, the Board of Directors of BillerudKorsnäs has decided upon new financial targets.

As previously announced, Billerud entered into an agreement with Kinnevik on 19 June 2012 to acquire all shares in Korsnäs. The conditions of the acquisition has now been met and the combination between Billerud and Korsnäs was completed today by Billerud acquiring all shares in Korsnäs. In connection with the combination, the Board of Directors of BillerudKorsnäs have decided, with the authorisation of the extraordinary general meeting on 14 September 2012, to execute a share issue with preferential right for the shareholders. Information about terms and conditions regarding the rights issue will be announced in a separate press release, sent immediately following this press release.

Consideration
The consideration for the acquired shares shall according to the combination agreement consist of newly issued shares in BillerudKorsnäs corresponding to an ownership share of 25.1% [1] of the votes in the company, cash payment which, at the date of the agreement, was estimated to SEK 3 200 million and the assumption by BillerudKorsnäs of the existing external net debt of Korsnäs which, at the date of the agreement, was estimated to SEK 5 650 million.

At the day of completion an issue to Kinnevik of 34 551 592 shares has been implemented corresponding to an ownership for Kinnevik of 25.1% of the votes and an increase in BillerudKorsnäs’ share capital in the amount of SEK 255 153 438. The cash payment has been subject to a preliminary adjustment based on estimated levels of external net debt, working capital, and investments as of the date of the completion of the combination. The cash consideration was adjusted to SEK 3 253 million [2], as estimated external net debt in Korsnäs as of 29 November 2012 amounts to SEK 5 799 million [3], a deviation of SEK 149 million (compared to the calculated level of net debt on the day of signing of the combination agreement of SEK 5 650 million) and as estimated working capital in Korsnäs as of 29 November is SEK 202 million higher than an agreed, normalised level. The total consideration amounts to SEK 11 358 million (on a debt free basis and based on Billerud’s closing share price on 28 November 2012). Further adjustment regarding the cash payment may occur depending on actual levels of external net debt, working capital and investments as of the transaction’s completion date.

Of the cash payment SEK 500 million has been paid in the form of a vendor note to Kinnevik that will be used to subscribe for shares in the rights issue announced by the Board of Directors today (please see separate press release).

Change of company name
The change of company name from Billerud Aktiebolag (publ) to BillerudKorsnäs Aktiebolag (publ) is, as a result of Billerud acquiring the shares in Korsnäs, now effective.

New Board of Directors
In accordance with the resolution by the extraordinary general meeting on 14 September 2012, the changes regarding the Board of Directors are effective as a result of the completion. BillerudKorsnäs’ new Board of Directors as of today, until the next annual general meeting, consists of Hannu Ryöppönen (Chairman), Mia Brunell Livfors, Lennart Holm, Jan Homan, Gunilla Jönson, Michael M.F. Kaufmann, Wilhelm Klingspor and Mikael Larsson as well as the employee representatives Helén Gustavsson and Kjell Olsson (with deputies Kurt Lindvall and Tobias Söderholm).

The new Board of Directors has at its statutory meeting resolved, among other things, to appoint Mikael Larsson (Chairman), Lennart Holm and Jan Homan as members of the Audit Committee. The Remuneration Committee consists of Hannu Ryöppönen (Chairman), Mia Brunell Livfors and Michael M.F. Kaufmann. Lennart Holm (Chairman) and Hannu Ryöppönen have been appointed as members of the Integration Committee, a committee formed specifically for the integration between Billerud and Korsnäs.

Senior management
The new Board of Directors has at its statutory meeting resolved Per Lindberg as President and CEO, and appointed Christer Simrén as executive vice president and COO of BillerudKorsnäs. For further information about other changes to senior management, please visit www.billerudkorsnas.com.
  

[1] Kinnevik’s owner share will amount to 25% if the dilution from Billerud's long-term incentive programs (LTIP) is included in the calculation of the number of Shares.
[2] In addition Billerud has paid SEK 2 579 million in compensation for Korsnäs’ receivable on Kinnevik of the equivalent amount, which has been settled in conjunction with completion of the Transaction.
[3] Excluding MSEK 60 in dividend received from Bergvik Skog.

Financial targets for BillerudKorsnäs
The Board of Directors of BillerudKorsnäs has decided today, on the following financial targets for the company:

2013 financial calendar
BillerudKorsnäs financial reporting dates during 2013 are as follows:

Year-end report for 2012                             8 February 2013
Interim report January-March 2013               23 April 2013
Interim report January-June 2013                 18 July 2013
Interim report January-September 2013        30 October 2013
Annual general meeting                               7 May 2013

Nomination committee for the annual general meeting 2013
The nomination committee for the annual general meeting 2013 in BillerudKorsnäs consists of the following members:

Mia Brunell Livfors, Investment AB Kinnevik, chairman
Michael M.F. Kaufmann, Frapag Beteiligungsholding AG
Frank Larsson, Handelsbanken fonder
Björn Franzon, Swedbank Robur fonder

The information is such that Billerud AB (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 15.00 CET, 29 November 2012.

BillerudKorsnäs in brief
BillerudKorsnäs offers primary fibre-based packaging materials and smart solutions for the packaging needs of today and tomorrow. The overall goal is to generate profitable growth. BillerudKorsnäs has the customers in focus using high quality materials, knowledge of the whole processing chain and a global network enabling accessibility. BillerudKorsnäs has a leading position within several segments, in primary fibre-based materials for consumer packaging as well as for industrial appliances. The purpose of the company is to create value that strengthen customer brands and competitiveness, thus ensure the company’s position as the natural partner in smarter packaging. Approximately 75% of sales in BillerudKorsnäs are consumer related, Food & Beverages is the largest segment. Europe is currently the most important market to BillerudKorsnäs. The company’s annual turnover is approximately SEK 20 billion.

Three business areas
The Packaging Paper business area offers customers technically advanced primary fibre-based kraft and sack paper, as well as smart solutions in function, design and material choice. All grades are strong and have excellent printability and runability which contributes to increased conversion process productivity for the customers.

The Consumer Board business area develops and sells high-quality board made from primary fibre to several segments, including beverages and consumer goods, which demand efficient, attractive and functional packaging. The business area also offers delivery service and application expertise solutions to customers.

The Containerboard business area offers containerboard made from primary fibre that meets stringent demands on strength, hygiene and printing. The strong material contributes with lighter packaging resulting in lower emissions during transports. Advice on packaging optimisation helps brand owners identify the right packaging for items and logistics chains.

Approximately 4 400 employees
On 30 September 2012 Billerud had 2 490 employees and Korsnäs 1 883 employees. Consequently BillerudKorsnäs has approximately 4 400 employees in total.

Eight production units
Paper and board production takes place at eight production units – Gävle, Gruvön, Frövi/Rockhammar, Skärblacka and Karlsborg in Sweden, Pietarsaari and Tervasaari in Finland and Beetham in the UK.

The total production capacity is approximately 2 900 ktonnes annually.

For further information visit: www.billerudkorsnas.com

For further information, please contact:
Per Lindberg, president and CEO, +46 (0)8 553 335 00
Christer Simrén, vice president and COO, +46 (0)26 15 10 00
Sophie Arnius, IRO, +46 (0)8 553 335 24, +46 (0) 70 590 80 72

Relevant competition authorities have approved the combination between Billerud and Korsnäs. All conditions for the combination are consequently fulfilled. Accordingly, completion of the combination is planned to take place on 29 November 2012.

As previously announced, Billerud AB (publ) has on 19 June 2012 entered into an agreement with Investment AB Kinnevik to combine Billerud and Korsnäs AB. The combination was conditional upon, among other conditions, the approval from Billerud's shareholders and approval from relevant competition authorities.

The condition regarding approval from the shareholders was fulfilled at the extraordinary general meeting that was held on 14 September 2012. In addition, all relevant competition authorities have now approved the combination. Accordingly, the conditions for the combination are fulfilled.

"As a result of the combination with Korsnäs, we will become a leading player in the packaging paper business with a strengthened offer and a strong platform for future growth. The new company BillerudKorsnäs will be able to offer customers a better and wider range of products and solution. We will now, with full force, work with the integration and create a world leading company ", says Per Lindberg, President and CEO of Billerud.

The European Commission's decision to approve the combination is conditional upon the divestment of a paper machine located at the production facility in Gävle (PM 2). The sales of white kraft and sack paper products manufactured at PM 2 amounted to approximately 2 percent of the new Group's total combined sales volume for the year 2011. Furthermore, BillerudKorsnäs will for a period of time offer to deliver certain supply inputs such as pulp, steam and electricity to the paper machine.

"The condition for the European Commission's decision concerns a limited part of the new group's business operations and does not have a significant impact on the business logic or the expected synergies of the combination" says Per Lindberg, President and CEO of Billerud.

Completion of the combination is planned to take place on 29 November 2012 and the Board will, in immediate connection with it, making use of the authorisation granted to the Board from the extraordinary general meeting, resolve on, and announce the terms of, a new issue of shares with preferential rights for the shareholders. Further information on the new issue of shares will be available in the prospectus which will be published in connection with the Board's resolution.

Delivery includes the first permanent magnetized motor from ABB in Sweden

ABB, the leading power and automation group, has won an order to supply automation and control systems for two paper machines and a winder at Korsnäs AB in Gävle, Sweden. The mill produces paperboard and other packaging materials.

ABB will replace all the automation and control systems in the roller machine RM5, install new converters and drives for the wet end of the paper machine PM5 as well as a new drive system for the pope on PM2.

Korsnäs is replacing the equipment on the machines to ensure a trouble-free operation with maximum machine availability and safety.

The reconstruction/conversion of the drive system solution for the PM2 pope is carried out mainly to increase machine handling safety. The customer chose to base the new solution on ABB’s energy-efficient permanent magnet motor that was awarded the Wallenberg Award 2009.

 “Considering all the benefits of not needing any surrounding equipment that requires maintenance or any parts that must be replaced at intervals from ABB, we expect to save operational and maintenance costs. Furthermore, we want to test the new technique that we believe will be prevailing in the future,” said Lars Eriksson, project leader at Korsnäs in Gävle.

 “Roller machine 5 is a critical point in the production process and must therefore perform with the highest possible availability. To eliminate potential bottlenecks and keep the process running efficiently we are installing a new control system for the drive system application and machine controlling based on System 800xA from ABB”, said Eriksson.

The System 800xA delivery for RM5 includes a redundant server system, operator station, engineer station and operator panel. To avoid separate safety systems and to increase operator control, the machine control will be integrated into SIL-classified controls that will also run the safety classified circuits. The control system for the pope on paper machine PM2 will be with Compact 800 controller and operator panel. The project includes all design, application programming, documentation, commissioning and customer training.

ABB (www.abb.com) is a leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact. The ABB Group of companies operates in around 100 countries and employs about 117,000 people.

For help with any technical terms in this release, please go to: www.abb.com/glossary

The Swedish Paper Workers Union alerted on Tuesday a total stoppage of six companies from 16 April, The filing of approximately 3000 employees. The companies involved are SCA Packaging in Munksund, Iggesund works, Korsnäs Gävle, Stora Enso Skoghall, Värö Bruk and Skärblacka Bruk.

Earlier, the union announced an overtime ban, but the mediators postponed this from April 5 to April 12.

- We feel that we must increase the pressure in wage negotiations. We have not managed to get our negotiating counterpart Forest Industries operating in the manner which you are entitled to expect, says paper Federal Chairman Jan-Henrik Sandberg.