PaperAge Magazine

BillerudKorsnäs to Make Provision of SEK 450 Million in Second Quarter 2018

BillerudKorsnas During ordinary maintenance shutdowns, BillerudKorsnäs will take measures to strengthen the workplace environment that include the demolition of old buildings and decontamination.

July 10, 2018 - BillerudKorsnäs has within the scope of the recently launched group-wide program for improved production efficiency decided to implement measures with the aim of strengthening the workplace efficiency and environment at several of the Group's mills. In total, a provision of approximately SEK 450 million will be made, of which approximately SEK 200 million will impact cash flow over a three-year period. The provision will have a negative effect on the result in the second quarter of 2018.

The measures to strengthen the workplace environment will be taken during the ordinary maintenance shutdowns, starting after the summer, and continue through two to three maintenance cycles, depending on the work carried out. The measures will include demolition of old buildings and decontamination.

As the final stage of the consolidation of Billerud and Korsnäs, it has also been decided to implement unified accounting principles regarding spare parts and consumables at the mills, which will lead to impairment losses with effect in the second quarter.

In total, a provision of approximately SEK 450 million, of which approximately SEK 200 million will impact cash flow over a three-year period, will be made in the second quarter of 2018.

The provision will be reported as an item affecting comparability under unit 'Other.' The interim report for the period January-June 2018 will be published on 18 July 2018.

BillerudKorsnäs is a leading manufacturer of packaging papers, including: kraft and sack paper, liquid packaging board and cartonboard, containerboard (fluting and liner), and market pulp. The company has 8 production sites in Sweden, Finland and the UK. To learn more, please visit: www.billerudkorsnas.com.

SOURCE: BillerudKorsnäs