BillerudKorsnäs investigates opportunities for growth

The demand for sustainable packaging solutions is growing globally.
BillerudKorsnäs wants to explore the opportunities to respond to the demand
growth while at the same time streamline and further improve its production
structure. The company is now launching two feasibility studies, one regarding
investment into a new board machine at the production site in Gruvön, Sweden,
and the other regarding a streamlining and development of the production
structure for packaging papers.
BillerudKorsnäs is a leading supplier of renewable fiber based packaging
materials and solutions. Within liquid packaging board and other virgin fiber
cartonboard, the company is one of the world leaders. Driven by global
megatrends, the demand for these types of board is increasing. BillerudKorsnäs
therefore wants to investigate the possibility of installing a new board machine
at the production unit in Gruvön. The investigation is a part of BillerudKorsnäs
strategy for volume growth within business area Consumer Board. It is also in
line with the strategies for the business areas Containerboard and Packaging
Paper. The machine would become one of the most cost efficient in the world with
a capacity of approximately 500 000 t/a of liquid packaging board, cartonboard,
food service board and white kraftliner. In addition to growth in attractive
board segments, an investment decision would also include a streamlining of the
production structure within the business area Packaging Paper as the current
production of kraft papers at the Gruvön production unit would be discontinued
and replaced by production at other BillerudKorsnäs units. A potential
investment decision can be made at the earliest during 2016.

Simultaneously, BillerudKorsnäs is launching an investigation into the
possibilities of further structural change and growth in selected attractive
kraft paper segments. The investigation includes exploring the possibility of
moving the MG paper machine in Finnish Tervasaari, unintegrated to pulp
production, to Swedish Skärblacka, which is an integrated unit. The
investigation also includes investment in further value adding surface treatment
capacity at existing MG paper production in Skärblacka. If implemented, the
investments would strengthen Skärblacka’s position as one of the world's most
efficient production units for white MG papers while also opening up
opportunities in attractive market segments within medical papers, food
packaging and release liners. The investigation will be completed during the
first half of 2016 and after a potential decision is taken about a year is
required to carry out the investment in surface treatment capacity and one and a
half years for a potential paper machine move.

“These two investigations clearly indicate that we have our sights set on
growth. We carefully compare all different growth scenarios to each other. Right
now, we consider conditions for organic, investment driven, growth in our own
production structure as the most favorable. These investigations do not exclude
the possibility of further acquisitions”, says Per Lindberg, President and CEO,
BillerudKorsnäs.

The investigations are independent of each other. Also independent of the
outcome of the investigations, BillerudKorsnäs invites to union negotiations
regarding a possible closure of the BillerudKorsnäs production at Tervasaari.

For more information, please contact:

Per Lindberg, President and CEO, +46 (0)8 553 335 00

Henrik Essén, SVP Communication and Sustainability, +46 (0)8 553 335 00

The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to
publish under the Swedish Securities Market Act. Submitted for publication at
06.30 CET, August 25th  2015.
BillerudKorsnäs provides packaging materials and solutions that challenge
conventional packaging for a sustainable future. We are a world leading provider
of primary fiber based packaging materials and have customers in over 100
countries. The company has 8 production sites in Sweden, Finland and the UK and
about 4 300 employees in over 13 countries. BillerudKorsnäs has an annual
turnover of about SEK 21 billion and is listed on Nasdaq Stockholm.
www.billerudkorsnas.com