SOLNA, Sweden--(BUSINESS WIRE)--Regulatory News:
A new investment makes the board machine in Frövi the largest of its kind in the world. The investment is a concrete example of BillerudKorsnäs (STO:BILL) ambitious growth agenda.
The BillerudKorsnäs Board of Directors has today approved an investment of approximately SEK 900 million in the Frövi and Rockhammar mills. The investment targets increased capacity and improved quality of the output cartonboard and liquid packaging board.
- We have set an ambitious growth agenda for BillerudKorsnäs. For the business area Consumer Board the strategy is profitable volume growth. This investment is an important part of realising that strategy. – says Per Lindberg, CEO of BillerudKorsnäs .
The investment includes a rebuild of the board machine at the Frövi mill as well as a capacity upgrade of the Rockhammar pulp mill. After completion in 2017, the investment will bring the Frövi mill to an output of 550 000 t/a of high quality cartonboard and liquid packaging board and the Rockhammar mill up to 150 000 t/a of CTMP. After the investment, BillerudKorsnäs will operate the largest machine for production of cartonboard and liquid packaging board integrated to chemical pulp in the world.
- The demand for BillerudKorsnäs cartonboard and liquid packaging board is increasing. Through this investment we will maintain and strengthen our competitiveness and deliver on the increasing demands on our products and services, and thereby achieve sustainable growth within our business area Consumer Board. – says Ulf Eliasson, Senior Vice President Consumer Board
BillerudKorsnäs long term estimate for capital expenditure is for capex to be in line with depreciation i.e. approximately SEK 1400 million per year. The Frövi and Rockhammar investments imply that BillerudKorsnäs will exceed previous guidance for capex with approximately SEK 150 million for 2014 and that the capex level will be above the depreciations also for the coming two years.
The information in this press release is such that BillerudKorsnäs AB (publ) is obliged to disclose under the Swedish Securities Market Act and was submitted for publication at 14:00 CET on 26 August 2014. This release has been prepared in both a Swedish and an English version.
BillerudKorsnäs provides high quality paper and state of the art packaging expertise. Together with our global network of converters we develop smarter packaging solutions that save costs, boost brands thanks to improved design, and contribute towards smoother logistics and a cleaner environment. We have a turnover of SEK20 billion and employ 4,300 people in 13 countries.’www.billerudkorsnas.com
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