Displaying items by tag: billerud

As previously announced, Michigan State legislatures have approved legislation to grant Billerud investment support of up to USD 200 million in funding to support Billerud’s investment plans. Today, Michigan Governor Gretchen Whitmer signed the legislation, approving the Michigan Economic Development Corporation’s (MEDC) appropriation of the funds.

The transformation of the Escanaba Mill is planned to be the cornerstone of Billerud’s expansion into North America, one of the largest and growing markets in primary fiber premium cartonboard. The project is expected to support hundreds of high paying jobs and require a significant number of contractors during the construction period.

This funding follows additional incentives recently approved by the State of Michigan Administrative Board, including approval of the Forest Products Processing Renaissance Zone. The zone exempts Billerud from paying almost all state and local property taxes at the Escanaba Mill.  

The maximum support of USD 200 million assumes investments of approximately USD 1 billion. The final amount of the funding will be relative to the company’s actual investment and is subject to execution of the necessary agreements between the Michigan Strategic Fund (MSF) and Billerud U.S. Production Holdings LLC.

“Billerud’s transformational investment in their Escanaba Mill underscores the strength of our advanced manufacturing workforce and secures a critical win as we continue working to promote long-term, sustainable investments across the state,” said Quentin L. Messer, Jr., CEO of the MEDC and President and Chair of the MSF Board. “Through the steadfast support of our bipartisan legislative partners, the Whitmer-Gilchrist Administration, the men and women of organized labor, and our many local and regional partners across the Upper Peninsula, we are continuing to demonstrate that Michigan, on both peninsulas, is a place for pure opportunity.”

“We thank Governor Whitmer, the legislature, and the MEDC for their investment support for Billerud’s planned transformation of our Escanaba Mill into a world-class paperboard production facility,” said Billerud Americas Corporation President Rob Kreizenbeck. “We look forward to continuing to collaborate with our partners in government to facilitate our investments for the benefit of the Escanaba community, Upper Peninsula and the State of Michigan.”

A pre-feasibility study about Billerud’s planned conversion of the Escanaba Mill to paperboard production is ongoing and planned to be completed in the first half of 2023, after which the company’s Board of Directors can make an investment decision.
“This is truly a historic opportunity for the Upper Peninsula,” said Marty Fittante, CEO of InvestUP.  “We would like to express our appreciation to Billerud for its consideration in making this generational investment in Escanaba. The mill when transformed will not only benefit the region’s economy and the environment with its best-in-class sustainability standards but provide notice that the U.P. can and will compete in attracting advanced technology opportunities.”

Billerud provides paper and packaging materials that challenge conventional packaging for a sustainable future. We are a world leading company in superior paper and packaging materials made from virgin fibres; passionately committed to sustainability, quality and customer value. The company has nine production units in Sweden, USA, and Finland with around 5 800 employees in over 13 countries and customers in over 100 countries. Billerud is listed on Nasdaq Stockholm.
www.billerud.com

Ref Post 27th January

Billerud is evaluating significant investments to transform its Escanaba mill into a world-class paperboard production facility and has applied for investment support from the State of Michigan.

The Michigan House of Representatives and Senate has passed legislation approving an appropriation of up to USD 200 million in funding to support Billerud’s plans. The legislation must be approved by Michigan’s Governor, which is expected to occur within two weeks.

A pre-feasibility study about Billerud’s planned conversion of the Escanaba mill to paperboard production is ongoing and planned to be completed during the first half of 2023, after which the company’s Board of Directors can make an investment decision.

For further information, please contact:
Ivar Vatne, CFO, +46 8 553 335 07, This email address is being protected from spambots. You need JavaScript enabled to view it.
Lena Schattauer, Director Investor Relations, +46 8 553 335 10, This email address is being protected from spambots. You need JavaScript enabled to view it.

This information constituted inside information prior to publication. This is information that BillerudKorsnäs AB (publ) 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 8:50 CET on 27 January 2022.

BillerudKorsnäs is simplifying its name to Billerud to cater to its international customers. As a leading supplier of virgin fiber-based paper and packaging materials, the name change is fully in line with the company’s strategy to expand into North America and continue driving sustainable growth in global markets.  It is simply easier to say Billerud.

” We are now ready to meet the challenges of the future as one company: Billerud. One year ago, a clear strategic plan was drawn up with the aim of achieving profitable and sustainable sales growth until the year 2030 and to grow in North America. Today we change name to Billerud. The name change is a natural step on our strategic journey”, says Christoph Michalski, President and CEO at Billerud. 

The name simplification to Billerud will be implemented throughout the group starting today.  Billerud’s roots and heritage in the forest and paper industry go back more than 150 years and the company has had several different names.

”It is with pride that Billerud will carry its history into the present. What won’t change is the fact that we help our customers reduce their climate footprint of both their primary and secondary packaging. For us, product superiority is important and the impressive strength of our papers allow customers to use less packaging, save costs and reduce their carbon footprint. We will continue doing that as Billerud”, says Christoph Michalski.

As of today, Billerud's website is called billerud.com, and all employees will have the email address billerud.com. 

Read more about Billerud here: www.billerud.com

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

Lieferando, a fast growing on-line supplier of home-delivery food such as pizza, pasta and sushi has chosen Billerud’s 100% primary fibre paper for their new and improved pizza delivery boxes. The main reason behind the decision is the purity of the material guaranteeing a high level of product safety for their customers. High customer satisfaction is key and lieferando is not willing to comprise on the quality of the packaging.

Product safety is a hot topic and the regulations around food packaging are very strict. In Italy, the home of the pizza, the boxes are always made of primary fibres. Now the trend is moving North and lieferando is introducing stronger and fresher pizza boxes in Germany made from the highest quality Scandinavian fibres. The strength of the raw material makes it possible to reduce the weight of the packaging and at the same time increase the printability and purity of the food packaging.

“We are a new company wanting to challenge the market by modern technology and high customer satisfaction. It is therefore natural that we look for smarter packaging that boosts our brand and protect out high quality pizzas in the best possible way.” says Kai Hansen, MD and founder of lieferando.

The boxes will be produced by the Schiettinger Group in Auerswalde together with MB Karton Ernst Behrend in Berlin, Germany. Schiettinger Group is a company with over a century’s experience of producing solid and corrugated board for numerous types of end uses.

“We are a strong believer in the supremacy of primary fibres and the demand is constantly growing. Sustainability questions are on the agenda and we want to take our responsibility in the value chain by reducing the packaging weight and thus the waste. Billerud is a natural partner for us since they are in the forefront of developing high quality materials for smarter packaging solutions” says Bernhard Schinner, Plant Manager, at Schiettinger.

Billerud’s paper is made from a 100% primary fibres and complies with FDA 2011 Title 21, Chapter 1, § 176.170, §176.180 and BfR 2012 A, recommendation XXXVI. The paper is both compostable and recyclable.

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.

Billerud was commended for its work on investor relations in IR Nordic Markets Sweden 2012. For the second year in a row, Billerud was presented with the Best Mid Cap Company award and the award for Best IRO at a Mid Cap, which was awarded to Billerud’s IR manager Sophie Arnius.

IR Nordic Markets is the biggest study of IR in the Nordic region and was carried out by Regi for the 15th year in a row. In the study presented yesterday at IR Nordic Markets Awards Sweden 2012, assessments from analysts in the Nordic region and Europe formed the basis of the analysis of the financial communication of listed companies.

“I’m delighted with these two awards,” said Sophie Arnius, IR manager. “They’re proof that we’ve managed to maintain a high standard in our communication with the capital market, which is particularly pleasing because 2012 has been an intense year for Billerud on the acquisitions front.”

CEO Per Lindberg comments on the development during Q3 2012:

“The year’s third quarter shows continued stability of order bookings, net sales of SEK 2 628 million and an operating profit of SEK 161 million. I am fairly satisfied with this result, as it takes into account two maintenance shutdowns and the impact of a stronger Swedish krona. During the quarter we announced price increases for containerboard. Price increases announced earlier for kraft and sack paper show through in third quarter earnings, although at a level somewhat below expectations. This was a factor in a 2% price increase for packaging paper during the quarter.

The contribution of our Finnish production units to the business is developing according to plan and benefits from the acquisition are shown. In the course of the next quarter, our short-term service agreement with UPM expires. We will then operate independently in order processing, IT systems and operations. This will create better opportunities to obtain synergies from the acquisition. Because the Finnish acquisition sharply reduces our exposure to the market pulp market, we will no longer report our sales of market pulp separately. Instead, as of this quarter, this business will form part of the Packaging & Speciality Paper business area.

Work on preparations to complete the combination with Korsnäs and plan for integration of the companies is in full swing. We await decisions from the competition authorities concerned in mid-November. The combination is still assessed to take place during the fourth quarter of 2012.

Against that background, we are looking forward to a fourth quarter in which we can launch the next phase in the company’s expansion, with new and exciting opportunities for BillerudKorsnäs. Despite increasing signals of a challenging economic scenario and a currently tougher currency situation, I face the future full of confidence.”

Download for the full report

This was the winning entry in this year’s Billerud design competition SPICE: 12 at Berghs School of Communication in Stockholm.

This is the third year in succession that Billerud, the design agency NINE and Berghs School of Communication have organised the SPICE (Sustainable Packaging & Innovation Communication Event) design competition.

Over the course of six weeks, 12 teams of students of graphic design and project management have been working on this year’s challenge – to improve food company Semper’s existing baby food packaging and associated storage jars.

”It’s been a really exciting journey to follow the work of the students. And the results have exceeded all my expectations; to come up with such well thought-out and exciting design concepts in such a short time is impressive,” says Marina Eriksdotter, Group Brand Manager at Semper.

The proposal the jury liked best came from Emma Fällman, Jesper Olsson, Kajsa Jacobsen and Louise Persson. “This is a concept that went the whole way. A fresh approach to the development of packaging, really delightful illustrations and a presentation video on the contentment of baby food that went straight to the heart,” commented the jury.

“We began with Semper’s symbols: the red colour, the child. The emotional expression. And then we built on them,” says Kajsa Jacobsen and Jesper Olsson.

For the students the presentation to the jury was the finale to a hectic period that included a visit to Gruvön, Billerud’s paper mill, and talks on Billerud’s fibre-based products.

“The importance of product packaging is growing all the time. SPICE fits in well with Billerud’s customer offer: to develop smart, sustainable, value adding packaging. It gives us a unique opportunity to build a close relationship between the designers of the future and our products,” says Jimmy Nyström, Business Development Director at Billerud.

First prize now awaits the winning quartet – an inspiring journey to Berlin. All the prototypes and presentations will be featured in an exhibition at Semper’s headquarters in Sundbyberg.
“Then we will sit down in peace and quiet and think about how to proceed with all the ideas we have gained from the SPICE project,” says Marina Eriksdotter.