SOLNA, Sweden, May 29, 2020 (Press Release) -BillerudKorsnäs and UPM have entered into an agreement that will extend the supply agreement for pulp, steam and electricity for the production at BillerudKorsnäs’ mill in Pietarsaari.
The original agreement was signed in 2012 in conjunction with BillerudKorsnäs’ acquisition of the Pietarsaari mill and was initially scheduled to expire in June 2022. The now agreed new supply contract is based on market conditions and will enter into force in June 2020. As part of the renegotiation, the parties have agreed that BillerudKorsnäs will pay a compensation of EUR 15 million to UPM during the coming year in three instalments. A provision of this amount will be made in the results for the second quarter 2020 and will then be recognized as a cost affecting comparability.
“I am pleased that we have reached an agreement that secures the long-term paper production in Pietarsaari to the benefit of both parties,” comments Helene Biström, Executive Vice President Division Paper.
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 sites in Sweden, Finland and the UK and about 4500 employees in over 13 countries. BillerudKorsnäs has an annual turnover of about SEK 24 billion and is listed on Nasdaq Stockholm.