Annual Report 2006
A change in profitability
and position
CONTENTS
Year in brief ...3
Statement by Per Lindberg, CEO ...4
Business concept, strategies and goals...7
Packaging & Speciality Paper ...10
Packaging Boards...16
Market Pulp ...22
Human resources ...26
Our environment ...32
Directors’ report Group overview...40
Risk management and sensitivity analysis ...46
Financial statements Consolidated profit and loss accounts ...49
Consolidated balance sheet ... 50
Consolidated statement of changes in equity...51
Consolidated cash flow statements... 52
Profit and loss accounts for parent company...53
Balance sheet for parent company ... 54
Statement of changes in parent company equity ...55
Cash flow statement for parent company ...56
Notes and accounting principles ... 57
Proposed allocation of profit ...80
Auditor´s report...81
Corporate governance report Corporate governance report ...82
Board of Directors ...88
Senior Management Team ...90
Report on internal controls ...92
Key figure definitions...93
5-year review ...94
The Billerud share ...96
Shareholder information and key dates ...98
The annual report comprises pages 40-80. This document is a translation of the original, published in Swedish. In cases of any discrepancies between the Swedish and English versions, or in any other context, the Swedish original shall have precedence. 20 0 6 – BILLERUD UNDERGOING CHANGE 4
POSITIVE FUTURE FOR PA PER PRODUC TS 10 THROUGHOUT THE CHAIN OF VA LUE 16
MA RKET PULP CONTINUES TO RISE 22 CREATE TOMORROW’S BILLERUD 26
WORK THROUGHOUT THE ORGANISATION 32
TRENDS INDIC ATE A
NICHE PRODUC TS CRE ATE ECONOMIES
DEMAND FOR
INVOLVEMENT AND COMMITMENT
SUSTAINABLE ENVIRONMENTA L
3 Y E A R I N B R I E F
Year in brief
The market for Billerud’s products remained strong throughout 2006. Good demand enabled prices to be raised for most of the Group’s products.
A new organisation was introduced, new financial targets were set and the strategy was revised.
The ‘Billerud 2007’ project for change and investment in energy supplies have achieved cost savings.
Billerud’s self-sufficiency in electricity increased from 30% to 60% thanks to the investment in energy supplies.
Deliveries amounted to 1,364,000 tonnes, up 1% on 2005.
The operating profit for the full year reached MSEK 552, an improvement of MSEK 752 or MSEK 352 when adjusted for one-off costs charged in 2005.
The Board proposes a dividend of SEK 3.50 per share (3.25).
20 0 6 20 05 Net turnover, MSEK 7 369 6 823 Operating profit/loss, MSEK 552 -200
Operating margin, % 7 -3
Profit/loss after financial
items, MSEK 457 -278
Net profit/loss, MSEK 312 -183 Earnings per share, SEK 6,08 -3,56
Dividend, SEK 3,50
*)3,25
*)
Board proposal
MSEK %
-200 0 200 400 600 800 1000 1200 1400
-10 0 10 20 30 40 50 60 70
Operating margin Operating profit
2006 2005 2004 2003 2002
OPER ATING PROFIT A ND MA RGIN
MSEK %
0 250 500 750 1000 1250
-10 0 10 20 30 40
Return on capital employed Depreciation Investments
2006 2005 2004 2003 2002
INVESTMENT S, DEPRECIATION AND RE TURN
SEK
-5 0 5 10 15 20
Dividend Earnings per share
2006 2005 2004 2003 2002
* Board proposal
*
E A RNINGS PER SHARE AND DIVIDEND
2006 Billerud undergoing change
After several years of faltering profitability, Billerud’s earnings trend was
turned around in 2006. Prices could be raised slightly higher than costs increased.
Combined with greater efficiency this meant a strong improvement in profits.
D emand for our products was strong throughout the year. Prices could be raised on several occasions, which compensated for the considerable cost increases that occurred during the year. Our earnings are the result of a strong market and the fact that some competitors reduced their capacity.
Positive developments were not just due to a strong market. During the year we turned our earnings trend around and worked hard to transform our company.
Most of the Billerud 2007 project is now complete, a couple of years ahead of the original schedule.
Investing in generating our own energy has been successful and new turbines were taken into operation during the year.
In the first quarter of 2006 we implemented a new organisation based on business areas. Work aimed at creating a more customer-oriented business will continue in 2007.
Several new people have been recruited to top management posts and formed an effective management team. Decisions have been made concerning new financial targets and we have revised our strategy. Intensive efforts have been channelled into changing and strengthening Billerud, and I am convinced that we are on the right track.
Earnings trend
In 2006 we turned around an earnings trend that had been negative for several years. Compared with 2005, net sales rose by 8% to reach MSEK 7,369.
The operating profit for 2006 was MSEK 552.
Compared with the previous year, profits improved by MSEK 752. Earnings in 2005, however, included one-off costs of MSEK 400 for structural measures. Excluding this item, the improvement was MSEK 352, or 176%.
Focus on customers
The business cycle for pulp and paper improved in 2006 and our order books were strong throughout the year. This is a firm base to stand on, but for a long time we have been working to get even closer to our customers and find solutions that even better meet their needs. The aim is to work more flexibly on the market and steadily improve our market mix.
Our new business area-based organisation is an important step in further improving our market opportunities. Our new business areas have responsibility for developing markets, products, technical service and pricing.
With a sharper focus we can sell the right product on the right market to the right customer at the right price. We have started work aimed at strengthening our positions and I consider that the development of our business areas has matched our expectations in terms of building a stronger company.
Cost-efficiency
Prices for energy and raw materials have risen
significantly. Our energy investments have partly
compensated for this increase but we are still facing
tough pressure on costs. In Sweden there has been a lot
of debate about the country’s energy policies and there
5 S T A T E M E N T B Y P E R L I N D B E R G , C E O
is no doubt that the lack of electricity at competitive prices sets a major challenge for Billerud and all of Sweden’s basic industries. The unwillingness to permit new cost-efficient alternatives in the electricity market must change, and base industries are prepared to take a considerable amount of responsibility in this connection.
Energy savings programme
But we cannot just wait for the politicians to act.
Our energy savings programme was completed during the year as planned and with successful results.
By starting up the bark boilers and electricity turbines at our Swedish mills we become less dependent on the uncertain and increasingly expensive electricity market.
The money invested, around SEK 1 billion, has a short payback time and is without doubt an excellent investment that will create value in the future.
Meanwhile we are looking at new ways to improve the efficiency of our energy consumption.
Billerud 2007
The process of reducing the total number of employees in line with our Billerud 2007 project continued during the past year. This is a comprehensive transformation that will reduce our headcount by 18%. This type of project is both painful and time-consuming. We have decided to increase the pace to bring savings forward and make the transition as quickly as possible.
It is important to make the period of uncertainty brief, both for employees and business efficiency. The changes are proceeding mainly according to plan, although with some delays at Gruvön and Beetham. I consider that these delays are well motivated, mainly because we must ensure we have the right competence in place for the future.
Looking forward
We believe in Billerud and the products we sell.
We expect the market to provide opportunities for
growth and profitability. Naturally, this requires us to
invest in product and process development. In the past
year Billerud decided to invest MSEK 370 in two machines
at Skärblacka and Gruvön which will enable us to produce
packaging paper of top world class. These investments
will be completed in 2008 and they create yet another
key piece of the platform we are building for
the future.
Strategic review
Within Billerud’s new senior management team we have been reviewing our strategy and financial targets.
The primary goal is to safeguard future competitiveness while protecting the interests of shareholders. I believe we have the found the right balance between securing efficiency in existing production and increasing the force of business development and sales while exploring new areas of growth.
Developing business is an exciting challenge that I, together with the senior management team and the business areas, will be spending a lot of time on.
We must adopt new approaches in our markets, work with completely new customer groups and develop new solutions based on the strong positions we already possess in a number of segments. I am convinced that we will see successful examples of this in 2007.
Outlook
Making forecasts has been difficult in our industry in recent years. That seems no different in 2007. On the one hand the demand situation is good in nearly all areas, which is positive for price development. On the other hand, costs are continuing to rise, the Swedish krona is building strength and competition for raw materials is hotting up. All of these factors will affect us in 2007. We know therefore that we will have to work very hard to sustain the advances we made in 2006 and make further improvements. We are fully prepared to do this.
Your value is our goal
Billerud’s share price developed positively during the autumn, after a rather turbulent spring and summer with record prices. At the end of the year the share price was up almost 20% on the start of the year.
Developing the value of Billerud is at the heart of what we do. The objective is to create long-term value for our owners and provide stable profitability and transparent development. That was our goal in 2006 and it will remain so in the future. Your value in Billerud is our goal.
Per Lindberg
President and CEO
7 B U S I N E S S C O N C E P T , S T R A T E G I E S A N D G O A L S
A change
in profitability
Billerud is today a leading supplier of materials to specific segments of the packaging market. The strategy is from an effective base to focus on customer requirements and further develop packaging material solutions.
B illerud will create growth by offering new and existing customers comprehensive solutions based on the company’s knowledge of packaging material and the process of adding value. During the year the company’s strategy and financial targets were reviewed.
A summary of the changes was presented at a capital markets day on 15 November and is reported below.
Billerud’s market
The packaging market is growing globally at around 4%
per year and should amount in total to around USD 600 billion in 2009. Growth for packaging paper is following a similar course.
Competition is strong in all segments but the market for packaging is expanding. The current trends in packaging development, distribution and consumption support Billerud’s products and offer opportunities for new business offers.
Positions will be strengthened in the most attractive segments in which Billerud plays a leading role and the market forecasts are promising. The focus will move from products to customers, and investments will be made in prioritised segments to boost quality and the overall offer. This work is being implemented in stages and will produce results from 2008 and onward.
Business concept
Billerud offers demanding customers packaging material and solutions that promote and protect their products – packaging that is attractive, strong and made of renewable material.
and position
Strategy
The company’s strategy is based on three components:
World class process efficiency
The ability to match the expectations of owners and customers is mainly built via the efficiency of internal production processes. Billerud therefore focuses on quality at every level and on the development of suppliers with regard to input goods and logistics.
To create long-term competitiveness and secure strong cash flow, Billerud works systematically with internal process efficiency. The quality of equipment and products will be raised and product development will be safeguarded.
Within the framework for existing capacity, production volumes for paper will be increased by 100,000 tonnes by 2010. Market pulp will be reduced over the same time due to high overheads. Selective investments will be made to reach the set goals.
To ensure maximum efficiency in all processes in production, maintenance and administration, the Billerud 2007 project is being implemented. This will lead to a reduction of around 450 full-time employees and savings of around MSEK 250 per year. To achieve
these targets, investments are being made in IT infrastructure, IT systems, automation and plants.
Billerud will reduce consumption of external energy. An investment of MSEK 1,090 was concluded during the year. This investment comprised new turbines for back pressure and the rebuild of bark boilers at the Swedish mills. The repayment period is less than four years and the investment will lead to an increase in self-sufficiency in electricity from 30% to 60%.
An increased centralisation of material purchasing should provide considerable synergy effects between the mills. The aim is to cut costs and boost efficiency in external logistics with the full impact coming in 2007 and 2008.
Customer-focused development
By developing products, the product mix and the customer structure, Billerud can improve its average margins. The product mix will be improved by assessing profitability per product and shifting volumes between geographic markets, business areas, customer segments and customers. A sharper focus on customers will give us the space to identify strategic customers and create lasting partnerships. Three business areas have been established in order to strengthen and expand positions within attractive segments:
»Moving the focus from product to customer«
FIN A NCIA L TA RGE T S 20 02 2003 2004 2005 2006 AVERAGE OBJECTIVE
Operating margin, % 17 16 11 -3 7 9,6 10
Net debt/equity ratio (annual average) 0.54 0.42 0.47 0.72 1.01 0.63 0.6-0.9
Dividend as % age of net profit 47 46 66 - 58
1)64 50
2)1)
Board’s proposal of SEK 3.50 per share
2)
Over a business cycle
Growth
World class process efficiency
Customer-focused
development
9 B U S I N E S S C O N C E P T , S T R A T E G I E S A N D G O A L S
Packaging & Speciality Paper Packaging Boards
Market Pulp
The business areas are divided into clear customer segments with direct responsibility for developing products and services, technical service, sales planning and price setting. The purpose is to create a clearer focus on customers and profitability. The segment team is responsible for developing know-how about the requirements of customers and end-users throughout the chain of value.
To get closer to attractive markets outside Western Europe, Billerud is examining different forms of co-operation with customers, suppliers and competitors. As a consequence, new sales offices have been opened in Warsaw and Shanghai.
Growth
Several of the markets and value chains where Billerud is active offer opportunities for new approaches.
By using a strong position in some segments, Billerud can provide customers with more comprehensive packaging solutions. The aim is to expand contacts with customers, designers, printers and machine manufacturers in order to create new solutions and services. Competence will therefore be reinforced in key areas. The company expects to launch new business projects in 2007 and 2008.
Financial targets Operating margin
Historically, the development of the pulp and paper industry has followed a cycle with corresponding swings in the earnings capabilities of the actors in the industry. When setting a profit target for Billerud, the Board of Directors considered the company’s profit history, average exchange rates and price trends for pulp and paper in recent years. The new target is that the EBIT margin shall be at least 10% over an economic cycle.
Return on investments
Completed investments shall provide a return that is significantly above the weighted average cost of capital (WACC). This will ensure that Billerud has a return on investment that meets the demands of shareholders
while covering the company’s costs for liabilities.
Different return requirements will be applied depending on the risk level of the investment.
Investments that do not provide a return significantly above the WACC will not be accepted.
Organic growth
The target is to establish long-term organic growth of 3% from 2008 onward. Growth will be generated from increasing the proportion of paper in relation to market pulp, improving the product mix and customer structure and from new growth projects in the chain of value.
Debt/equity ratio
The business is influenced to a large extent by economic conditions, which means that the operating risk is extensive. Strengthening the financial position in good years is essential in order to sustain the company in bad years. Billerud therefore has a target that its debt/equity ratio over a business cycle shall be between 0.6 and 0.9.
Dividend policy
The target is that the dividend over a business cycle shall
on average be equal to 50% of net profits. The dividend
paid to shareholders will be dependent on, among other
factors, Billerud’s profit level, financial position and
future development opportunities.
Europe is the largest market, but sales
are rising in countries such as China
and Indonesia.
1 1 P A C K A G I N G & S P E C I A L I T Y P A P E R
I n 2006 Billerud laid the foundations for an organisation with a sharper focus on sales and for which know-how and analysis are the keys to long-term competitiveness on global markets. Whether it’s for demanding industrial applications, packaging for single-use medical items, food or building materials, Billerud’s competitive range of packaging and speciality paper is put to the test every day. Europe is the largest market, although sales are growing in China and Indonesia.
Unique competitive advantages of paper
Billerud’s paper is used for flexible packaging and can be combined with aluminium or plastic foil. This packaging protects foods such as soups and sauces from damp and light. The unique raw material from forests in northern Europe produces a pure paper that is strong and offers advanced printability and excellent runnability in customers’ machines. These competitive advantages create opportunities for growth and during the year various partnerships were extended in order to create new business.
Fully automated processes for consumer packaging The form & fill segment comprises packaging for baking products such as flour and sugar. Fast and fully automated packaging processes place high demands on paper strength
and stiffness. Packaging is gaining an increasingly important role in the marketing of products and brands, which adds to the demands placed on paper printability.
To highlight the increasing importance of packaging throughout the chain of value, Billerud extended its co-operation with various customers in 2006.
Europe remains the major market but contacts are growing in Asia and South Africa where there are good opportunities to create new business.
Carrier bags for the fashion industry
The combination of strength and printability makes carrier bags produced using Billerud’s paper an excellent medium for fashion store brands. During the year Billerud’s sales staff visited brand owners to find out more about how this sector works.
Long-term protection for medical products The combination of high strength and well-balanced porosity makes Billerud’s paper a suitable material for medical packaging. The paper permits a sterilising agent to penetrate while providing long-term protection against micro-organisms.
Development in the packaging market supports Billerud’s products and the company’s ability to create new business offers. Positive trends include increased environmental awareness, improved cost conditions in the conversion process and agreement that paper packaging provides a more luxurious feeling compared with many other materials.
Trends indicate
a positive future
for paper products
The Billerud range includes qualities to match the most demanding sterilisation and packaging methods.
Examples include consumable medical packaging for needles, catheters and gloves.
White interleaving paper is a growing segment Favourable economic conditions for the steel industry
have meant increased demand for white interleaving paper both in Europe and Asia. Billerud’s product range contains qualities well suited to packaging steel.
The strong, pure paper and its smooth surface are free of particles and chemically neutral. This reduces the risk of damage to steel rolls and of the paper burning onto the steel bands during rolling. This paper can also be re-used. Over the years Billerud has built up knowledge of the steel process it can share with customers in order to utilise the maximum capacity of the paper.
Labels create new business opportunities Billerud’s base paper for release liner is used for
many self-adhesive applications such as labels, tape, insulation material and decals. The tight, consistent and strong surface prevents the silicone layer from penetrating through the paper. A development project has been set up to assess the possibilities for developing new products for the labels market.
Bright outlook for sack paper
Billerud’s patented sack paper, QuickFill
®has a unique ability to breathe, i.e. allow air to pass through, without being perforated. This property is called porosity and the result is a sack that can be filled quickly without creating dust. Billerud’s sack paper range includes over a hundred different grades that are approved for packaging food and transporting dangerous goods.
The appearance of packaging and its function as an
»Packaging is
gaining an increasingly important role in the marketing of products«
Chemicals, 3%
Medicine, 4%
Retail, 9%
Other, 17%
Food, 25%
Building material, 42%
PACK AGING & SPECIA LIT Y PA PER – A PPLIC ATIONS (EUROPE)
Source: JaakkoPöyry and Billerud 2006
0 50 100 150 200 250
Burgo Group Mondi Packaging Cham Tenero UPM - Kymmene Billerud
K R A F T PA PER FOR PACK AGING – L A RGEST
MANUFAC TURERS IN WESTERN EUROPE , ‘0 0 0 TONNES
Billerud is Europe’s largest manufacturer of uncoated white kraft paper with an estimated market share of around 30%.
0 100 200 300 400 500 600 700 800
Brown paper White paper Smurfit Kappa
UPM - Kymmene Billerud Segheza Mondi Packaging
SACK PA PER – L A RGEST M A NUFAC TURERS IN EUROPE , ‘0 0 0 TONNES
Billerud is Europe’s largest manufacturer of sack paper with an estimated market share of around 20%.
Source: Billerud 2006Source: Jaakko Pöyry and Billerud 2006
1 3 P A C K A G I N G & S P E C I A L I T Y P A P E R
QUICK GUIDE
Applications
Flexible packaging, carrier bags, medical applications, interleaving, release liner, sacks
Key properties
Strength, runnability, printability, purity and porosity.
51 %
Share of Group’s net turnover Production capacity: around 545,000 tonnes Flexible packaging
Medical applications Sacks
Release liner Carrier bags
Interleaving
information carrier are becoming more and more important. The trend is towards sacks featuring attractive and informative printing. Billerud is a market leader with its white, strong and smooth surfaced sack paper. Consistently high quality means good runnability in customers’ converting machines.
Deliveries of white sack paper increased in Europe during the year. Structural changes in the industry have also created favourable opportunities for brown sack paper.
Customer benefit at every stage
Billerud white and brown QuickFill
®enable functional and cost-effective packaging solutions for materials in powder form. The paper enables a faster and cleaner filling process. Sacks can also be made smaller, which reduces consumption of paper. Billerud QuickFill
®has excellent strength properties, which means that the number of sheets or the grammage of the paper layers can be reduced. The result is a lower material cost that means environmental benefits and lower transport and storage costs.
Calculating the total cost
Billerud sets aside large resources for research and development. Using Billerud’s calculation model, customers and end-users can calculate the total cost of using different types of paper based on reduced material consumption and faster processing. In its special laboratory, Billerud has full-scale test equipment that can measure the capability of sacks to allow air to pass through. Different sack designs can be compared. By co-operating closely with customers and other players, Billerud participates in the development of innovative solutions. The company is involved in development projects with research institutes and industrial businesses associated with the sack market.
M A RK E T DE TAI L S
Kraft paper for packaging
Global market for white kraft paper for packaging amounts to 3.1 million tonnes.
European market is 40% of total, 1.2 million tonnes.
The five largest customers for white kraft paper for packaging accounted for 20% of Billerud’s sales in this product area in 2006.
Sack paper
Global market for sack paper amounts to 4.8 million tonnes, of which around 10%
is white sack paper.
European market is around 30% of total, 1.3 million tonnes. This is divided between white sack paper (0.2 million tonnes) and brown sack paper (1.1 million tonnes).
The five largest customers for sack paper accounted for around 30% of Billerud’s sales in this product area in 2006.
PACKAGING & SPECIALITY PAPER 20 0 6 20 05
Net turnover, MSEK 3 709 3 751
Operating profit, MSEK 309 411
Operating margin, % 8 11
Deliveries, ‘000 tonnes 535 538
»Billerud is a market
leader with its white,
strong and smooth
surfaced sack paper«
1 5 P A C K A G I N G & S P E C I A L I T Y P A P E R
Sharing knowledge
Specialists from different departments are part of a segment team that has comprehensive knowledge of the entire chain of value. The aim is to get close to end-users in different applications. For example, the customer may be a flour or sugar producer who wants a fully automated form & fill process, or large fashion chain or supermarket wanting attractive and robust carrier bags.
By listening to market requirements there are good opportunities for discovering new applications or getting ideas for new products. Billerud is currently managing a number of projects in interesting niches.
It is important to provide customers with technical support and service, manage stocks and delivery and share knowledge about the conversion process.
Earnings trend
Compared with 2005, net turnover fell by 1% to MSEK 3,709. Operating profit fell, too, by MSEK 102 or 25% to MSEK 309, mainly due to higher energy and wood prices that could not be fully countered by higher prices, and to an unfavourable currency situation. Despite good demand, strong competition meant that price rises were limited.
Prices in local currencies increased by around 3%
during 2006.
Paper reinforcement for seams Fertiliser
Animal feed Building materials
Improved contacts with all stages of the
chain of value mean greater knowledge of
new applications for Billerud’s products.
1 7 P A C K A G I N G B O A R D S
A s a market leader and following a long period of development, Billerud has advanced its positions and launched the next generation of fluting.
Billerud Flute
®is by far the strongest fluting in the world, delivering a 20% improvement in technical properties compared with other products on the market.
Profitable launch of Billerud Flute
®For customers, Billerud Flute
®means more efficient production with fewer disruptions, reduced energy consumption and less waste. The product means a lighter, more eco-friendly and more economical packaging that reduces raw material consumption, transport costs and requirements for storage space.
The high product quality generates profitability at every stage. Furthermore, unchanged strength at lower weight means greater flexibility when developing new and better packaging for fruit and vegetables, drinks, home electronics and other heavy goods.
New business on global markets
Billerud Flute
®is sold globally with the largest customers so far in Italy, Spain, Greece, Turkey and Morocco. By spreading awareness of the product’s advantages, to converters and end-users, there are good opportunities for creating new and profitable business.
Around 80% of customers tested the new quality during the year. Demand is rising steadily and by the end
of the year Billerud Flute
®accounted for around 30% of total fluting production.
Close co-operation creates new business Production of liquid board tripled in 2006 and forecasts suggest growth will continue. Tetra Pak is among the oldest customers and in recent years Billerud has delivered paper for liquid packaging for Tetra Classic, the three-cornered tetra packaging used for cream, among other things.
Following an extensive period of development, Billerud introduced a new grade of liquid board in 2006 designed for use on several growth markets. The launch of a new generation of fluting was both successful and profitable. Increased growth is expected for parts of the Billerud White Liner collection.
Niched products
create economies
throughout the chain of value
Heavy goods
In co-operation with Tetra Pak, Billerud has developed a new paper grade used for Tetra Fino, a liquid packaging launched on a broad front in several of the world’s most densely populated countries.
Perfect portion packaging for drinks
Tetra Fino looks like a small cushion and is a perfect packaging for smaller portions of drinks, such as long- lasting milk that can be distributed to school children in areas with poorly developed infrastructure. Demand is increasing steadily and there is significant growth potential in countries such as China, India, Pakistan and parts of South America.
Shared agenda for product development Tetra Pak places high demands on quality.
To participate in the Tetra Fino project Billerud had to invest considerably in machinery, technical upgrades and to gain hygiene certificates. Sales and product development are on a shared agenda, with Billerud and Tetra Pak teaming up to create growth in this segment.
From supporting role to lead actor
Improved contacts with all stages of the chain of value mean greater knowledge of how Billerud’s products can be used. Increased understanding enables Billerud to take a stronger grip on the market and create new business. For example, by studying the journey an orange takes from the plantation in Spain to a store shelf in Sweden we gain knowledge of how containerboard boxes are used throughout the chain of value.
Information promotes the development of new grades that help to reduce waste and improve transport.
Scientific tests in the lab
Billerud’s knowledge of the conversion process from paper to packaging plays a key role for everyone involved in the chain of value.
»Billerud Flute ® is by far the strongest fluting in the world«
Food, drinks and farm products, 58%
Chemicals, medicines, 10%
Other, 32%
CONTAINERBOA RD – A PPLIC ATIONS (EUROPE)
Source: JaakkoPöyry and Billerud 2006
0 50 100 150 200 250 300 350 400
JSC Arkhangelsk P&P Smurfit Kappa Group Powerflute Oy Stora Enso Billerud
SEMI-CHEMICAL FLUTING – LARGEST MANUFACTURERS IN EUROPE , ‘0 0 0 TONNES
Billerud is the leading supplier of semi-chemical fluting in Europe with a market share of around 30%. Billerud is a market leader for fully bleached low-grammage liner.
Source: Billerud 2006
1 9 P A C K A G I N G B O A R D S
QUICK GUIDE
Applications
Fruit and vegetables, milk and other drinks, consumer goods, luxury and gift items.
Key properties
Strength, purity, runnability, printability, and exceptional performance in damp environments.
30 %
Share of Group’s net turnover.
Production capacity corresponding to around 530,000 tonnes.
Fruit and vegetables Storage boxes
Luxury and gift items
Milk and other drinks
Using software developed in-house Billerud can improve the efficiency of the customer’s conversion process. Billerud Box Design
®shows which characteristics a completed box will have when using different paper grades.
Warp is the name of a program that helps the customer to optimise production of flat corrugated sheets so that there is minimal risk of the sheet warping when exposed to damp. Billerud takes the performance of corrugated board very seriously and during the year a climate chamber was constructed to test how various loads affect packaging performance.
An attractive exterior attracts attention Nowadays the packaging can be just as important as the product. To provide optimum printability all production of liner is now concentrated in Billerud’s pure white portfolio, White liner collection, which comprises Billerud Pure White, Billerud Pure Bright and Billerud Pure Coated. The names indicate the unique properties of these products.
White liner is produced in very low grammages and is used for both the outer and middle layers of microcorrugated board. The completely white design produces an attractive end-result with excellent printing properties for packaging luxury items such as perfume, mobile telephones, wine and gifts.
Luxury items have relatively short life cycles and regular new launches require packaging that sells.
By focusing on low grammages and products with exceptional printability, Billerud is benefiting from the expansion of this fast-growing sector.
Earnings trend
Compared with 2005, sales turnover rose by 5% to MSEK 2,169. Operating profit soared by MSEK 75, or 93%, to reach MSEK 156, mainly due to improved prices in local sales currencies. Prices in local currencies climbed by 13% during the year.
M A RK E T DE TAI L S
Global market for containerboard amounts to around 90 million tonnes.
European market for containerboard amounts to around 22 million tonnes, of which 1.2 million tonnes is semi-chemical fluting. Pure white liner and White top kraft liner account for around 1.2 million tonnes.
The five largest customers for
containerboard accounted for around 49% of Billerud’s sales in this product area in 2006.
PACK AGING BOA RDS 20 0 6 20 05
Net turnover, MSEK 2 169 2 058
Operating profit, MSEK 156 81
Operating margin, % 7 4
Deliveries, ‘000 tonnes 515 515
2 1 P A C K A G I N G B O A R D S
Compagnie Marocaine des Cartons et des Papiers (CMCP) is Morocco’s leading manufacturer of corrugated packaging. The company operates four factories and a mill that produces containerboard based on recycled fibre. The CMCP Group is partly owned by International Paper (IP), has 1,500 employees and annual sales of around MEUR 110. The company has been testing the new Billerud Flute
®.
CMCP has worked with Billerud for over 30 years and the Group’s CEO and chairman, Aziz Qadiri, says:
“Working with Billerud is more of a partnership than the classic relationship between customer and supplier. We tested the new grade in June and July 2006 and we are pleased to be among the first few to have that opportunity. We have also worked with
Billerud to develop new boxes and new paper grades in previous years.”
Two of CMCP’s factories specialise in boxes for fruit and vegetables, a product area in which strong growth is expected in the near future. Aziz Qadiri explains:
“With this new fluting we can retain quality while making significant savings. With development of products such as Billerud Flute
®and Billerud’s punctual, reliable deliveries and their exceptional customer service it is easy to understand why we have co-operated for so many years.
“Even if the new quality is slightly more expensive per tonne it means we can make our boxes 10% lighter while we can maintain quality and improve profits,”
says a very satisfied Aziz Qadiri.
“Our boxes weigh 10% less with new
Billerud Flute ® ”
Consumption of various paper
products is increasing, especially
in Asian countries.
2 3 M A R K E T P U L P
A large part of the price rise should be seen as compensation for higher costs for input materials and a lower exchange rate for USD. Development was modest at the start of the year but market pulp reported profits in the third and final quarters.
Stable market position
During 2006 there was a balance between supply and demand on the pulp market. One of the main reasons for this is the structural changes taking place in the industry. The competitive situation has forced the closure of many older mills, primarily in North America. Meanwhile, new mills have been built in South America and South East Asia for the production of short-fibre pulp.
Billerud is one of Europe’s leading manufacturers of Nordic long-fibre sulphate pulp and a strategic supplier to several leading paper producers in Europe.
Billerud’s mills produce more pulp than the Group uses in its paper mills. The surplus, around one quarter of the total, is sold as market pulp.
Increased consumption of various paper products More than half of Billerud’s market pulp is used to produce writing paper and printing paper. Another major application area is tissue and packaging paper.
The raw material is 100% primary fibre from trees that grow in northern Europe. This gives a strong,
market pulp
continues to rise
pure paper of high quality that also contributes to efficient handling in converters’ processes.
An increasing number of manufacturers use short-fibre pulp for various types of paper, while consumption of bleached long-fibre sulphate pulp is increasing by 1 to 2% per year. The reason for this is increased consumption of various paper products, primarily in Asia.
Billerud’s long-fibre pulp is used for reinforcement when making tissue paper, for example. Pulp is used for around 10-20% of the total fibre mix. The rest is often short-fibre pulp produced from eucalyptus wood.
Eucalyptus pulp, which has short fibres, gives paper good printing characteristics, while Billerud’s long-fibre pulp gives the paper sufficient strength to withstand stresses in the production process and for additional handling by converters and printers.
Focus on special products
Billerud is progressing positively in terms of sales of market pulp for production of special products.
Examples of special products include air filters for cars, artificial leather used to decorate jeans and insoles for shoes. Pulp is also used as a binding agent for medical pills.
Deliveries in this segment increased during the year and there is further potential for growth, mainly in Asia.
By listening to the market and maintaining broad
The year was characterised by good demand for pulp, and there are signs that the positive trends will continue in 2007. The price of bleached long-fibre sulphate pulp rose to USD 730 per tonne at the end of 2006, an increase of USD 130 compared with the end of 2005.
Demand for
contacts, Billerud can initiate co-operation with several actors in end-user niches.
Strong relations with Asia
Over the years Billerud has built up close relations with customers, some of whom have been buying from Billerud since the 1960s. Europe is the largest single market for market pulp, while most growth is occurring in Asia.
To retain its strong market positions Billerud has developed more in-depth relations in China and as a result a Billerud sales office will open in Shanghai during 2007. Paper is experiencing positive trends.
Changed consumption patterns and increased environmental awareness are creating new business opportunities.
A clear environmental profile
Increasing numbers of consumers are demanding environmentally certified products and Billerud’s pulp mills have FSC and PEFC certification. Certification means that Billerud may sell certified products corresponding to the volume of certified wood material the company purchases.
The Forest Stewardship Council, FSC, is an international organisation that works for environmentally adapted, socially beneficial and economically viable management of the world’s forests. PEFC stands for Programme for the Endorsement of Forest Certification schemes.
Smart, eco-friendly transport
Billerud works proactively to improve the efficiency of pulp transportation from its mills to customers’
factories. Trucks have been largely replaced by trains and Billerud is today one of five owners of ScandFibre Logistics AB, a company that exclusively provides rail transport and which currently handles around two million tonnes of products per year.
Earnings trend
Compared with 2005 net turnover climbed by 13% to MSEK 1,348. Operating profit increased by MSEK 24 compared with the previous year. Higher costs and a weaker exchange rate for USD were countered by higher prices and higher volumes.
M A RK E T DE TAI L S
The global market for market pulp amounts to around 52 million tonnes. Bleached long-fibre sulphate pulp accounts for around 24 million tonnes of this total.
The European market for chemical pulp amounts to 16 million tonnes.
The five largest customers for market pulp accounted for around 38% of Billerud’s sales in this product area in 2006.
M A RK E T PUL P 20 0 6 20 05
Net turnover, MSEK 1 348 1 197
Operating profit, MSEK 12 -12
Operating margin, % 1 -1
Deliveries, ‘000 tonnes 314 298
0 500 1000 1500 2000
Billerud Zell Pölz Stora Enso Mercer Group Metsä Group
Södra
L A RGEST WESTERN EUROPE A N M A NUFAC TURERS OF NORDIC BLE ACHED LONG - FIBRE SULPH ATE PULP,
‘0 0 0 TONNES
A PPLIC ATION A RE A S FOR BILLERUD’S M A RK E T PULP
Writing and printing paper, 55%
Packaging paper, 20%
Other, 10%
Tissue, 15%
Source: Hawkins Wright, 2006Source: Billerud 2006
2 5 M A R K E T P U L P
QUICK GUIDE
Applications
Coated and uncoated paper, LWC, tissue, packaging paper, thermo paper and special paper.
19 %
Share of Group’s net turnover Production capacity: around 350,000 tonnes
Tissue
Pulp bales
Printing paper Toilet paper
Writing paper and wrappers.
commitment
create the future Billerud
To meet the challenges of the future, Billerud is increasing the pace of change.
In 2006, 205 employees left the company, mainly due to retirement. Individual requirements were considered to find good solutions. There was also a focus on creating a secure and healthy working environment for the organisation that will manage the continued development of the company.
Involvement and
2 7 H U M A N R E S O U R C E S
T o boost effectiveness on the market and create an economically sustainable business, Billerud laid the foundations for a more customer-oriented organisation in 2006. The Billerud 2007 project will reduce staff numbers by 450 full-time jobs, mainly in operations and maintenance where there are greater opportunities for designing more efficient work processes.
Organisational changes will reduce business costs by around MSEK 250 per year from 2008. The headcount at the end of the year was 2,437 employees.
Respect for the individual
Billerud has invested a one-off sum of MSEK 400 to manage the staff reduction in a responsible way, with respect shown for the individual. Consideration for staff needs has been shown as far as possible when planning redundancies.
Co-determination negotiations with the trade unions resulted during the year in planned retirements and solutions connected with the so-called toolbox. Staff reductions started in 2005 and take place as staff reach the agreed retirement age or the planned assignment is completed.
Securing knowledge through mentorship Surveys were performed in 2005 in order to prevent knowledge gaps arising when experienced staff retired.
Initiatives such as mentorships and twin-commands will ensure that know-how is kept within the company in the future.
The need for an open exchange of information has
become obvious in connection with this transfer of
know-how.
Efficient internal communication is a prerequisite for creating a secure working environment for staff who remain to lead our business.
More active exchange of information Communication is a vital tool for creating
involvement and commitment. More active dialogue within the organisation and extended responsibility for communication are key components in the implementation of Billerud’s new organisation. The aim is to create transparency and give staff insight into key issues and decisions that affect the development of the company.
In concrete terms this means improving contacts between managers, trade unions and staff through networks and creating a better dialogue between staff across departments and mills.
Seeing opportunities in change
There has been a great willingness to see opportunities in the changes made throughout the company. Despite a fast tempo and significant challenges making changes work, the new organisation is finding its feet.
Computerisation and automation make it possible to improve co-operation between, for example, operation and maintenance. Opportunities to rotate jobs within a wider work field give staff greater involvement and a better understanding of the business.
Billerud’s success on the market is based on each
staff member taking personal responsibility for daily activities. This may involve preventing operational disruption, taking the initiative for improvements and supporting colleagues in various situations.
Shared work methods with clear goals Building a sustainable business with a reduced staff requires shared work methods and efficient procedures.
In the new organisation, work is more goal oriented. Each working group identifies areas for improvement, sets goals and implements action plans. Work is measured against set targets at regular intervals. The purpose is that staff will clearly see the effects of decisions made in daily activities.
Positive co-operation within the company Energy is a good example of how the organisation exchanges information. During the year the Swedish mills have installed new turbines that are increasing the amount of self-generated electricity. This project has been organised across mill boundaries and laid the foundations for a shared view of future development.
Developing clear leadership roles
A customer-oriented and market-oriented company requires strong leadership. Every employee must understand his or her role and see the results of individual performance. The leader’s role is to involve and stimulate staff to self-sufficiency, responsibility and involvement.
EMPLOYEES 20 02 20 03 2004 20 05 20 0 6
Average no. of employees
1)2 383 2 451 2 623 2 600 2 476
No. of employees at year-end1
1)2 418 2 434 2 689 2 642 2 437
Employee turnover, % 3.1 3.3 3.2 3.5 12.5
2)Average age 45.0 45.4 45.8 46.3 44.7
Work-related injuries
3), %
4)1.7 1.7 1.7 1.7
Total sick leave, % 6.0 5.7 5.1 4.9 4.1
Of which long-term leave
(> 60 days) of total leave, %
4)58.7 56.7 55.1 52.7
Details of work-related injuries, sick leave and average age are for the Group’s Swedish companies
1)
Increase in no. of employees from 2004 onward is mainly due to acquisition of Beetham
2)
Corrected for redundancies in connection with Billerud 2007 project staff turnover was 2.1%
3)
No. of injuries resulting in sick leave as per cent of total no. of employees (industry average = 3)
4)
Information not available
2 9 H U M A N R E S O U R C E S
STRATEGIC HUMAN RESOURCE ISSUES Several new management posts were filled during the
year. To create a joint platform, a course in situational leadership will begin at the start of 2007. The aim is that managers shall be able to support staff in all possible work situations.
New HR managers from other branches
Cecilia Lundin took over as the new director of human resources on 1 August 2006. She also joined the senior management team. Cecilia Lundin was previously head of human resources for the Nordic region at Novartis Sweden.
The new head of human resources at Karlsborg is Janne Lindmark, who took on the post at the end of May 2006. He previously held a similar position at IKEA in Linköping and previously worked for 20 years in the co-operative movement.
Christer Davidsson became the new head of human resources at Skärblacka in October 2006. He joined Billerud from a neighbouring paper mill, Fiskeby, where he held a similar post. He has also been head of human resources for Systembolaget in Sweden.
With experience of the consumer and service sectors, these new managers will bring a new perspective from market and customer based organisations that are different in several ways to structures in the forest industry.
Major survey of training requirements
Each employee has individual requirements and their own ideas about how they wish to develop. A major programme of competence development was therefore started in 2006. The skills required in each position are being established. As the organisation is filled individual training courses will be arranged to meet requirements.
Giving young people a positive impression of the forest industry
Changes being made at Billerud means that the average age has been reduced from 46.3 years to 44.7 years. To increase interest among young people and lay the foundations for future recruitment initiatives, Billerud has arranged a series of activities at upper secondary schools, colleges and universities.
Several Swedish forest industry companies annually arrange recruitment events at Sweden’s five technology universities. In 2006 these events attracted around 450 students.
Develop leadership to stimulate target- oriented performance.
Raise Billerud’s competence levels based on individual requirements.
Support good health and rehabilitation to reduce sick leave.
Increase numbers of women employees and support the development of women within the company.
0 10 20 30 40 50
Blue collar White collar
60- 50-59 40-49 30-39 -29
years years years years years
AGE DISTRIBUTION (%)
The proportion of employees aged 50 or older was 42% (51) among white collar staff and 33% (38) among blue collar staff. The proportion of employees under 40 was 30% (25) among white collar staff and 33% (29) among blue collar staff.
0 500 1000 1500 2000 2500
Women Men
2006 2005 2004 2003 2002
AVER AGE NO. OF EMPLOYEES
The increase in the average number of employees in 2004 was mainly
due to the acquisition of Beetham. In 2006, 205 employees left Billerud.
Billerud’s President and CEO, Per Lindberg, was the head speaker at an event held at Chalmers University of Technology in Göteborg, where he was himself a postgraduate.
Framtidsresan is the name of an event organised by the forest industry that reaches around 10,000 students at upper secondary schools in Sweden each year. The aim is to arrange activities that provide a positive picture of the industry and show what career opportunities are available.
Attracting more women to Billerud
A comprehensive programme for improving equality is being implemented within Billerud. Most of this work takes the form of long term and continuous daily activities, although a certain amount of training also takes place. Managers, representatives and staff are regularly taught about equality issues and gender differences.
By recruiting more women to the company there will be greater opportunities for appointing more women managers. Meetings for women are arranged at the mills each year to attract younger women to Billerud and the professions practised at our mills. The aim is to try to gain a better balance among the genders on the technical side.
Encouraging men to take parental leave Getting more fathers to take parental leave is a top priority for work on equality. Billerud pays 80% of a parent’s wage not covered by the Swedish social security system. This benefit makes it easier for families to share parental leave.
Healthy staff build a strong company
Despite significant challenges in adapting the new organisation, sick leave in 2006 fell by 4.1% of ordinary working hours. Individual programmes have increased employees’ knowledge of the positive effects of a healthier lifestyle.
»Staff have shown great willingness to view change as an opportunity«
0 2 4 6 8 10
Short-term sick leave, up to 14 days Long-term sick leave, 15 days or more Total sick leave
2006 2005
2004 2003
TOTA L SICK LE AVE A S % OF HOURS WORK ED
Sick leave has continued to fall and is now just 4.1 % of ordinary working hours.
0 2 4 6 8 10
50- 30-49 -29
2006 2005
2004 2003
SICK LE AVE DIVIDED BY AGE A S % OF HOURS WORK ED
0 2 4 6 8 10
Sick leave, women
Sick leave, men
2006 2005
2004 2003
Sick leave taken by women continues to fall.
SICK LE AVE DIVIDED BY GENDER A S % OF
HOURS WORK ED
3 1 H U M A N R E S O U R C E S
To prevent work-related injuries and poor health, all members of staff have access to exercise equipment and gyms.
A shared health strategy forms the basis for Billerud’s working environment, in terms of physical fitness, mental wellbeing and social issues. By supporting healthier lifestyles and rehabilitation, Billerud aims to reduce sick leave and enable staff with reduced working capabilities to return quicker to working life.
Influencing behaviour to raise safety
A safe workplace requires efficient systems understood by everyone. Billerud works continuously to improve work safety and in 2006 the number of accumulated work-related injuries in relation to the total number of employees stood at 1.7%.
The safety of staff is a top working environment priority. By introducing methods that influence behaviour the aim is to increase awareness of safety issues.
One objective is to increase knowledge of near-accidents in order to implement preventive measures.
Working environment targets for 2007-2010 Reduce the number of accidents resulting in sick leave by 10%.
Double the number of near-accidents reported.
Health plans based on individual requirements An increasing number of Billerud employees have individually adapted health plans. The basic aim is that each participant shall form their own health plan in consultation with company healthcare staff. Staff select their own form of health activities in groups at their workplaces. The company provides financial support for leisure activities designed to improve the health of the individual.
Billerud has worked proactively to achieve an
alcohol-free and drug-free workplace. Trained
counsellors and nurses are employed by the company
to address drug and alcohol issues and inform about
the medical and social effects.
environmental
work permeates our organisation
Billerud endeavours to achieve sustainable and long-term environmental awareness at every level of its organisation. The energy field is one example where investment in new steam power turbines is increasing self-sufficiency in electricity from 30% to 60%.
Sustainable
3 3 O U R E N V I R O N M E N T
T he ability to manage various environmental issues earned Billerud second highest marks in Folksam’s annual analysis of the environmental responsibility shown by listed Swedish companies. Folksam supports its assessment by stating that Billerud has policies and plans for key environmental aspects, such as the use of forest, water and energy.
Successful investment in own energy
Billerud aims to view its business from an eco-cycle perspective. Climate work is a good example of how an eco-cycle perspective is a prerequisite for success. The mills are largely self-sufficient in energy. Most energy is generated by burning bark and other parts of the wood that are surplus to requirements of pulp production.
Around 95% of heating energy and internal electricity production is based on renewable biofuel. The rest is generated by burning oil and gas. By rebuilding the bark
boilers at the Swedish mills, Billerud has halved its consumption of oil in favour of biofuel. The new steam power turbines taken into operation in 2006 will produce around 60% of the company’s electricity requirements in 2007.
Paper in an eco-cycle
The forest industry is unique. Not many other industries are based on a renewable resource, such as the forest, and end-products, such as waste paper, that can be recycled after use or burnt to produce energy.
The capability of the forest to capture carbon dioxide
from combustion and re-use it during photosynthesis
means that the eco-cycle is closed. This eco-cycle is
also in balance with nature, unlike plastic materials
and the combustion of fossil fuels such as coal and oil.
Towards shared goals
Knowledgeable and committed staff are a pre-condition for success on the environmental front. All employees at the mills have received training covering every aspect from global environmental issues to mill-specific questions.
Billerud’s environmental work is based on the Group’s policy for quality, the environment and social responsibility. One of the tools used to guide this work is the environmental management system at each mill.
This system makes it easier to prioritise, follow up and control the business. Each mill has a programme of measures with targets for continuous improvements.
In 2006 the mills introduced certified energy management systems.
Green gold
Billerud does not own any forest, but sustainable forest management is a decisive factor for the future of the business. Because the forest is a renewable raw material and modern forest management uses eco-friendly methods it can be said that Sweden’s forests are used but not consumed.
Each year Billerud purchases and consumes around 5.5 million cubic metres of wood raw materials.
This comprises softwood and hardwood primarily from Sweden. A central purchasing function negotiates agreements with suppliers and is responsible for ensuring sufficient quantities of wood at the right place at the right time. Purchasing agreements are signed with each supplier and include Billerud’s demands for environmental consideration when harvesting and transporting logs.
Most wood is purchased from Sveaskog and Holmen.
To avoid unnecessary transport Billerud tries to use locally harvested wood as much as possible.
Between 20 and 25 % of wood is imported, primarily from the Baltic states.
Demands on suppliers
Billerud’s basic requirement for wood materials is that the wood comes from sources where harvesting is performed in accordance with local laws and statutes.
Wood must not come from controversial sources, key biotopes, forests where there is serious social conflict or forests protected by law. Raw material must not be contaminated with mould or be treated with chemicals that are forbidden in Sweden. Transport must be carried out in an environmentally acceptable way.
Billerud’s Swedish mills have traceability certification in accordance with both the PEFC and FSC. The PEFC is an international system for the certification of forestry.
The aim is to develop sustainable forestry with a good balance between three key areas – forest production, the environment and social interests.
The FSC is an international organisation that promotes environmentally-adapted, socially beneficial and economically viable use of the globe’s forests.
Forests certified with the FSC standard are managed responsibly in terms of the environment, the community and financial interests.
Traceability certificates enable Billerud to sell eco-labelled products in proportion to the volume of certified wood it purchases. Billerud’s purchasing department works actively to increase purchases of traceable and certified wood raw materials.
Biofuels powering the mills
A large portion of the heating energy used to make pulp and paper is produced in the mills’ recovery boilers.
During pulp production, wood fibres are separated from each other by dissolving the lignin that binds them together.
The lignin is later used as fuel in the recovery boiler.
In addition to producing energy the recovery boilers also recover chemicals. The remainder of the heating energy needed is generated in the bark boilers by burning other biofuels such as wood bark. The boilers produce steam that is used in production processes and to power the turbines that produce electricity.
The hunt for kilowatt hours
Work aimed at reducing overall energy consumption has been going on for many years and progress is continuous.
This is an area where environmental and
financial considerations coincide. Saving energy reduces emissions of greenhouse gases and cuts costs. Energy is saved by recycling surplus energy in process liquids, waste water and flue gases. Where possible, the mills supply excess heating to district heating networks.
Efficiency cuts costs
In 2005 Billerud’s Swedish mills were approved
for participation in the Swedish Energy Agency’s
Programme for Energy Efficiency, which is aimed
at energy-intensive businesses.
3 5 O U R E N V I R O N M E N T
FAC T S 20 0 6 BEE TH A M GRU VÖN K A RL SBORG SK ÄRBLACK A
Average no. of employees 150 1 090 470 670
CERTIFIC ATE
1)Quality management system – ISO 9001 X X X X
Environmental management system – ISO 14001 X X X X
Eco Management and Audit Scheme – EMAS X X X
Traceability certificate for wood raw materials – PEFC X X X
Traceability certificate for wood raw materials – FSC X X X
Hygiene management system – BRC/IoP X
PRODUC TION C A PACIT Y, TONNES/ YE A R TOTA L
Packaging & Speciality Paper 45 000 130 000 130 000 240 000 545 000
Packaging Boards 440 000 90 000 530 000
Market Pulp 115 000 170 000 70 000 355 000
Total production capacity 45 000 685 000 300 000 400 000 1 430 000
Permitted production of end products
- Paper and pulp
2)840 000 310 000 470 000
- Coating of paper 70 000
1)
www.billerud.com/cert
2)
