BillerudKorsnäs Comments on Today's Paper Packaging Strategies

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.

 

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