BillerudKorsnäs Completes Divestment of PM2 to SwedPaper

PM 2 (width 5.2 meters) has the capacity to produce 70,000 tpy of white kraft and sack paper.

Aug. 1, 2013 - BillerudKorsnäs said that it has completed the sale of a paper machine (PM2) at the its Gävle pulp and paper mill in Sweden to SwedPaper AB after the deal was approved by regulators

The divestment of PM2 was a condition set by the European Commission upon its approval of the merger of Billerud and Korsnäs in late-November 2012.

The machine produces kraft and sack paper.

Other operations at Gävle will not be affected by the sale and will remain unchanged in BillerudKorsnäs' ownership, the company said.

Following the sale of PM2, BillerudKorsnäs will supply input items such as pulp, steam and water to SwedPaper. In addition, BillerudKorsnäs will sell a maximum of 66,000 tons per year of pulp to SwedPaper. Pricing for the pulp will be in line with the market.

Effective August 1, 2013, sales of pulp to PM2 will be accounted for in BillerudKorsnäs' Packaging Paper Business Area.

Gävle pulp and paper mill in Sweden has the capacity to produce 700,000 tpy of sulphate pulp and 700,000 tpy of paper and paper board. The mill operates 3 paper machines: PM 2, PM 4 and PM 5.

For further information about BillerudKorsnäs, visit www.billerudkorsnas.com.

SOURCE: BillerudKorsnäs