News - BillerudKorsnäs Finland Oy Pietarsaari Mill



News - BillerudKorsnäs Finland Oy Pietarsaari Mill

BillerudKorsnäs Finland Oy Pietarsaari Mill

News - BillerudKorsnäs Finland Oy Pietarsaari Mill

Newsgrafik #114067

BillerudKorsnäs invests for growth and efficiency in packaging paper  (Company news)

The BillerudKorsnäs board has approved a SEK 1 280 million investment program to strengthen the leading position of the company in kraft papers for packaging applications. The investment will enable further growth in attractive market segments and at the same time streamline the company’s production structure.

The investment program will result in the Skärblacka production unit in Sweden (photo) being developed into a world leading center for machine glazed, MG, kraft paper production. The program includes relocating the BillerudKorsnäs MG paper machine in Tervasaari, Finland, to Skärblacka and investing in surface treatment capacity on the existing paper machine 7 in Skärblacka. The Tervasaari machine is one of the largest MG paper machines in the world. In Skärblacka it will be fully integrated to pulp production which will give it a highly competitive position in the white MG paper market. The surface treatment capacity at Skärblacka PM7 will allow further functionality to be added for applications within food packaging, medical packaging and release liners.

“Packaging solutions based on renewable raw materials are parts of the solution to some of the challenges we face in society. In order to contribute to the sustainable future we believe in, we need to constantly develop ourselves and our assets. This investment gives us a production platform for continued growth and increased efficiency within our business area Packaging Paper”, says Per Lindberg, President and CEO, BillerudKorsnäs.

The investments will be carried out between 2016 and early 2018 and start-ups of the relocated machine and the rebuilt PM7 are expected during Q4 2017 to Q1 2018. BillerudKorsnäs underlying investment level is approximately SEK 1 300 million per year. With the decision announced today, the total investment level is expected to increase to approximately SEK 1 420 million in 2016 and approximately SEK 1 900 million in both 2017 and 2018.

More than 40 new jobs will be created in Skärblacka as a result of the investments. In addition to this, there is significant positive employment effect among suppliers and contractors during the implementation phase.

As announced earlier, BillerudKorsnäs is also working on a feasibility study regarding the potential investment in a new board machine at the Gruvön production unit for further volume growth within business area Consumer Board. No decision has been made yet regarding this potential investment. The study is currently in an intense phase and is expected to be completed by the end of 2016.
(BillerudKorsnäs AB (publ))

Newsgrafik #112079

Improved paper as a result of a dryer section rebuild at BillerudKorsnäs, Pietarsaari  (Company news)

EV Group (EVG) has delivered a dryer section modification on the PM1 at BillerudKorsnäs Finland Oy, Pietarsaari. After the modification the draw differences between the press and dryer section have been reduced with improved end product properties as a result. Simultaneously also the amount of web breaks have been reduced, improving the overall runnability and production line efficiency.

EVG made modifications to shorten the long open draw between the press and dryer section. Grooved cylinders in the first dryer group were modified to vacuum rolls by drilling the cylinder surface. EV EasyOne eco high release web stabilizers were installed above these drilled vacuum rolls. The installation also included a low pressure compressor and compressed air piping. The remaining first dryer section pockets were equipped with EVsf2 web stabilizers to ensure a good runnability of the web. DST doctors and needed modifications and additions to existing air systems were also included into the scope of supply, as the field activities including installation and start-up services.

As a result of the modification the end product properties were improved as expected. Less web breaks has also led to an improved runnability in the press and dryer section.

BillerudKorsnäs Pietarsaari PM1 produces kraft and sack paper in the basis weight of 50 - 150g/m2. Machine speed is 900 m/min, width 6.6 m and with a yearly production capacity of 200.000 tons.
(EV Group Oy - EVG)

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BillerudKorsnäs: Year-end report January-December 2012  (Company news)

Picture: President and CEO Per Lindberg

Fourth quarter 2012
-Net sales amounted to SEK 3 068 million, compared with SEK 2 628 million in the previous quarter. The increase was due to the Korsnäs acquisition.
-Operating profit totalled SEK 25 million. The decline of SEK 136 million from the preceding quarter is mainly attributable to non-recurring and seasonal factors.
-Results for the quarter were charged with non-recurring costs of SEK 102 million. Adjusted to reflect these non-recurring costs, operating profit totalled SEK 127 million.
-Prices in local currency for packaging materials were improved by just below 2% than in the previous quarter due to implementation of earlier announced price increases.
-The acquisition of Korsnäs was completed on 29 November 2012 and a preferential rights issue valued at approximately SEK 2 billion was carried out.

Full year 2012 compared with the same period in 2011
-Net sales amounted to SEK 10 427 million, a rise of 12%.
-Operating profit fell to SEK 489 million, mainly as a result of lower prices in local currency and a less favourable currency situation.
-In all, non-recurring costs amounted to SEK 170 million (10).

Proposed dividend
The Board of Directors proposes a dividend of SEK 2.00 per share for 2012.

The order situation for the majority of products in the packaging materials segments is expected to remain at normal seasonal levels through the first quarter of 2013.
Prices in local currency for packaging materials are expected to remain stable in the first quarter of 2013.
Wood prices in 2013 are expected to be lower than in 2012.
It is estimated that non-recurring costs of SEK 48 million, arising from a reduction in the surplus value in the inventory of finished products acquired, will be charged to earnings in the first quarter of 2013.

Comments by BillerudKorsnäs ’ CEO Per Lindberg:
Eventful quarter rounds off a historic year
“With the finalization of the historic combination between Billerud and Korsnäs, the fourth quarter was an unusually eventful one. We also completed the integration of our paper machines in Finland during the quarter. The integration process at BillerudKorsnäs progresses as planned, and from the next quarter on we will start to report the benefits of our synergies. The synergies for the two acquisitions are estimated at approximately SEK 330 million annually, with full impact from the end of 2015.
Our preferential rights issue was oversubscribed, and we greatly value the firm support we have received from our shareholders. The proceeds of the issue, approximately SEK 2 billion, strengthen our financial position and create scope for us to capture future business opportunities.
While our quarterly results have been charged with a number of extra costs, the underlying operational results for the Group are still stable. Most importantly of all, we remain highly optimistic regarding the future opportunities open to BillerudKorsnäs.”
(BillerudKorsnäs AB (publ))


Completion of the acquisition of UPM's packaging paper operations  (Company news)

Billerud Finland Oy's acquisition of UPM's packaging paper operations at Pietarsaari and Tervasaari is now completed. Billerud Finland Oy is a wholly owned subsidiary of Billerud AB. The purchase price is around EUR 130 million.

The acquired operations will be consolidated as of 1 June 2012, and will be included in the Packaging & Speciality Paper business area.

In the January–June 2012 interim report, sales of the Billerud Group's market pulp will continue to be reported as a separate business area, that is Market Pulp. As of 1 July 2012, market pulp sales will not be reported separately but will be included in the Packaging and Speciality Paper business area.

Financial pro forma information will be published in the January–June 2012 interim report.

In 2011, the acquired operations' sales amounted to approximately EUR 220 million, and EBITDA was approximately EUR 18 million (pro forma). Annual depreciation is estimated to be approximately MEUR 6.5.

The transaction is financed through half cash and cash equivalents, half through raising loans within existing credit frameworks. The impact of the acquisition on Billerud's net debt/equity ratio will be +24 percentage points.

The acquisition has been described previously in a press release dated 1 February 2012 and 22 May 2012.

For further information please contact:
Per Lindberg, President and CEO, +46(0)8-553 335 01, +46(0)70-248 15 17
Susanne Lithander, CFO,+46(0)8-553 335 07, +46(0)73-037 08 74
(Billerud AB)