BillerudKorsnäs (Sweden) this past week announces that negotiations with labor unions over a proposal for new organization will be initiated within short. The proposal contains a full profit and loss responsibility in three divisions.

"During my first months with BillerudKorsnäs, it has become clear to me that we have great conditions for profitable growth. In order for us to take maximum advantage out of these conditions, we need to become faster and clarify accountability within the company. This we now want to accomplish through a new organization in three divisions with full profit and loss responsibility", said Petra Einarsson, president and CEO of BillerudKorsnäs.

The current organization of BillerudKorsnäs is a matrix with three business areas, a production organization and a number of supporting functions. The proposal for a new organization, which will be subject to negotiations, contains an organization in three divisions: sack and kraft papers, board and corrugated materials, and packaging solutions. The production units will be included in the division for sack and kraft papers and in the division for board and corrugated materials. All the details of the future organization are not yet decided and will be worked out and negotiated going forward.

In parallel to this process, a review of the roles and composition of the senior management team of the company will also be carried out.

After finalized negotiations, the ambition is to staff the new organization and fully implement it during the latter part of 2018. The external financial reporting of the company will be changed according to the new organization by January 1, 2019.