BillerudKorsnäs to close paper machine in Tervasaari, Finland

Friday, Oct 16, 2015

BillerudKorsnäs has decided on streamlining their production structure through a closure of the paper machine in Tervasaari, Finland, latest during 3Q 2016. BillerudKorsnäs will thereby entirely leave the Tervasaari production site. The closure will lead to restructuring costs of approximately SEK 100 million ($12 million), as the company says in the press release received by Lesprom Network.

The BillerudKorsnäs production at Tervasaari consists of one paper machine with a capacity of 100,000 t/a of machine glazed papers, MG papers. The paper machine is unintegrated to pulp production which results in an unfavorable cost position, despite the fact that the machine is among the largest of its kind.

In August this year, BillerudKorsnäs started a feasibility study investigating among other things the potential of moving the Tervasaari machine to Skärblacka in Sweden. Skärblacka would offer integration to pulp production and, with the Tervasaari machine, Skärblacka would strengthen its position as one of the world's most efficient production units for white MG papers. The investigation is on-going and will be finalized during the first half of 2016.

“The closure of production at Tervasaari is a first step in streamlining our production structure. There is right now intensive work being done in the form of feasibility studies that will lead us in our further development of our production structure. The machine in Tervasaari is one of the largest of its kind and our staff has done a great job to improve profitability through creative ideas and committed efforts but unfortunately this has not been enough due to external factors,” says Christer Simrén, COO and Executive Vice President, BillerudKorsnäs.

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