BillerudKorsnäs to Sell PM 2 at Gävle to SwedPaper
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To satisfy one of the conditions set by the EU Commission for approval of the combination between Billerud and Korsnäs (Sweden), an agreement has been signed with SwedPaper AB concerning divestment of a paper machine (PM 2) at the BillerudKorsnäs Gävle mill in Sweden. Production at PM 2 in 2012 accounted for approximately 2% of BillerudKorsnäs' total combined sales volume.
Under the agreement, PM 2 at the Gävle mill will be sold to SwedPaper. The machine produces kraft and sack paper. The PM 2 operation employs approximately 60 people, who will be offered employment with SwedPaper. Other operations at Gävle will not be affected by the sale and will remain in BillerudKorsnäs' ownership.
The parties have signed long-term commercial agreements, under which BillerudKorsnäs will inter alia supply input items such as pulp, steam, and water to SwedPaper. Pricing for pulp will be in line with the market. Under the conditions of the agreement, BillerudKorsnäs will sell SwedPaper an annual volume of pulp amounting to a maximum of 66 000 metric tons. Sales of pulp to PM 2 will be accounted for in the Packaging Paper Business Area. At BillerudKorsnäs, the operations of PM 2 have been accounted for under Other units.
The disposal will not in any way affect the synergy and cost-cutting program announced earlier for the BillerudKorsnäs Group. The transaction is conditional upon approval of the European Commission and from relevant authorities.
SwedPaper is a newly started company that has been established with the purpose to acquire PM 2. Behind SwedPaper are four private investors—Mikael Colebring, Peter Ekman, Lars-Åke Brännström och, and Lars-Eric Boreström (through their separate companies)—all with extensive experience in entrepreneurship, particularly in the paper industry. SwedPaper has reached an agreement with Ekman & Co. for the distribution of PM 2's products.
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