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Cover Story: Swedish Report: Competitive mill standard


September 1, 2002
By Pulp & Paper Canada

Bert stlund is CEO of Billerud:”Billerud is a somewhat different forest industry; we are small, relative to the giants of the Nordic countries. But we are, at the same time, big within our niche segm…

Bert stlund is CEO of Billerud:

“Billerud is a somewhat different forest industry; we are small, relative to the giants of the Nordic countries. But we are, at the same time, big within our niche segments. Our three mills produce 1.3 million tons of pulp and paper, with more than 80% sold in Europe. Close to 60% of our turnover is related to segments where we are No. 1 or 2 in Europe. Segments include MG/MF kraft paper, sack paper, containerboard and pulp. This means high market shares and may be a good argument to invest in Billerud. We were introduced in the Swedish Stock Exchange half a year ago and ownership today amounts to 33% from outside Sweden.

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“Our three mills all are in pretty good shape,” continues Mr. stlund, “if not the most modern. Our goal for the nearest future is to benefit from recent upgrades and maintain the investment level to the deductions, which are some 5% of turnover, or some USD 37 million. This money includes normal mill maintenance, a certain central pot as well as the environmental investments. The last might be relatively high compared to the deduction when they come.

“Generally speaking I might say that the Nordic mills, in particular, as well as the European ones, have a higher technical standard than those of North America. In comparison with our competitors, we have a very good standard for our mills,” concludes Mr. stlund.


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