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BillerudKorsnäs completes divestment of PM 2 at its Gävle mill to SwedPaper

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BillerudKorsnäs completes divestment of PM 2 at its Gävle mill to SwedPaper

July 31, 2013 - 21:55

SOLNA, Sweden, Aug. 1, 2013 (Business Wire) -BillerudKorsnäs' divestment of paper machine PM2 at the Group's Gävle production unit, to SwedPaper AB, has been approved by the appropriate competition authorities and the transaction has now been completed.

The transaction fulfils the requirement set by the European Commission for approval of the combination between Billerud and Korsnäs, and PM2 at the Gävle unit has now been divested to SwedPaper. Other operations at the Gävle production unit will not be affected by the sale and will remain unchanged in BillerudKorsnäs' ownership.

Following the divestment, BillerudKorsnäs will, for example, supply input items such as pulp, steam and water to SwedPaper. BillerudKorsnäs will sell to SwedPaper an annual volume of pulp amounting to a maximum of 66 000 tons. Pricing for the pulp will be in line with the market. As of 1 August 2013, sales of pulp to PM2 will be accounted for in the Packaging Paper Business Area. Before the divestment, the operations of PM2 had been accounted for at BillerudKorsnäs under Other units.

The divestment was described previously in press releases dated 6 May 2013 and 12 June 2013.

The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to publish under the Swedish Securities Market Act. Submitted for publication at 11.45 CET, 1 August 2013.

BillerudKorsnäs - Packaging manufacturers and brand owners are offered added value in the form of brand-strengthening, productivity-boosting and environment-enhancing packaging solutions. BillerudKorsnäs has a world-leading market position within primary fibre-based packaging paper. The company has annual sales of around SEK 20 billion and is listed on NASDAQ OMX Stockholm. www.billerudkorsnas.com