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BillerudKorsnäs Comments on Today's Paper Packaging Strategies

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According to a BillerudKorsnäs (Solna, Sweden) Interim Business Report from Tuesday (Oct. 16, 2018): "The strong demand for innovative and sustainable packaging continues, resulting in positive sales performance in all business areas... However, headwinds from increasing raw material costs and start-up performance, continue to put pressure on our operating results."

The company reported that it is proceeding on schedule towards the start-up of the new KM7 board machine in March-April 2019. Furthermore, the company has recently announced new organizational structure, consisting of three business divisions with full profitability responsibility, effective as of the beginning of the month.

Currently, in this business, fiber costs account for more than approx. one-third of total operating costs, according to the company's findings.

In the regional industry there's expected to be high prices on the pulp supply, in the case of this company, to its non-integrated mill in Jakobstad, due to a fixed rebate in the long-term pulp supply agreement. Wood costs are expected to increase further while the wood supply situation has improved significantly.
 
NOTE: Original reports of this nature that may or may not originally have included market information, including any possible market outlook or revenue prediction, that is specifically edited out of TAPPI's OTW publication and is expressly prohibited, as our mission is to inform on the state of our industry based on facts and universal expectations about our production situations at present, but never to re-broadcast individual business specific earnings predictions, unconfirmed figures, or forward looking expectations. 
 

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