Billerud recently hosted a Capital Markets Day in Stockholm, where the company’s updated strategy was presented. Ahead of the event, the Board of Directors decided on new long-term financial targets and on strategic investments in North America.
Billerud’s updated strategy, ‘Way Forward’, reflects the company’s ambition to continue to be a leader in high performance paper and packaging materials. It aims to evolve towards paperboard while remaining committed to graphic and specialty paper in Region North America, and to strengthen the performance in Region Europe.
“Going forward we will prioritise profitability over growth and drive performance. We will leverage the growing demand for fibre-based packaging and Billerud’s attractive niche positions, strong manufacturing capabilities and flexible production system. Successful delivery on our plans will enable a strong and competitive Billerud. We target to achieve EBITDA of above SEK 6 bn through our strategic initiatives,” says Ivar Vatne, President and CEO, Billerud.
Billerud says it is committed to maintain its positions in the North American markets for graphic paper and specialty label paper, as well as to gradually evolve towards packaging materials to optimise capacity utilisation. Billerud’s Board of Directors decided on a strategic investment program of approximately SEK 1.2 bn in the Escanaba mill and SEK 0.2 bn in the Quinnesec mill. These investments will enable the transition towards paperboard production.
“We have an exciting plan in North America going forward, benefitting on sizeable market opportunities, coupled with our attractive Midwest location, competitive assets and excellent paperboard capabilities in Billerud. The evolution investments will be carried out in phases and in alignment with the mills’ scheduled maintenance shutdowns to minimise production disruptions. The upgrade of the woodyard in Escanaba is set to begin immediately, with the bulk of the work scheduled for the second half of 2025,” says Vatne.
