Lower pace of KM7 start-up affects third quarter result
Due to a lower pace in the initial start-up of the new board machine at Gruvön, the effect on the result in the third quarter is adjusted by approximately SEK 150 million. The effects in the fourth quarter and the full year 2020 are expected to be unchanged. The machine is still expected to make a positive contribution to EBITDA in 2021.
The customer response on produced and sold material is positive and the technical quality is satisfactory. However, production volumes from KM7 in 2019 are expected to be lower than previously planned. This is mainly due to lower pace in the initial start-up in combination with the complexity of the integration with the existing mill. The market demand for the material produced continues to be good and the machine is still expected to run at full production capacity in 2023.
The negative full year effect 2019 on EBITDA for the start-up of KM7 is adjusted from SEK 500 million to SEK 650 million. The effect on the result impacted the first half year by SEK 190 million and is estimated to impact the third quarter by approximately SEK 300 million and the fourth quarter with approximately SEK 160 million.
For further information, please contact:
Ivar Vatne, CFO, +46 8 553 335 07
Lena Schattauer, Head of Investor Relations, +46 8 553 335 10
This information constituted inside information prior to publication. This is information that BillerudKorsnäs AB (publ) is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:45 CET on 16 September 2019.
BillerudKorsnäs provides packaging materials and solutions that challenge conventional packaging for a sustainable future. We are a world leading provider of primary fibre based packaging materials and have customers in over 100 countries. The company has 8 production units in Sweden, Finland and the UK and about 4,500 employees in over 13 countries. BillerudKorsnäs has an annual turnover of approximately SEK 24 billion and is listed on Nasdaq Stockholm. www.billerudkorsnas.com
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