ANDRITZ airlay line for sustainable nonwovens production starts up at Carolina Nonwovens, United States

For the quarter ended 30 June 2020, Lecta had revenue of €206.6 million versus €345.6 million in the quarter ended 30 June 2019, a decrease of €139.0 million or -40.2%. This decrease was essentially attributable to Covid-19 pandemic: • Lower sales of CWF, Specialties and Purchased Products of €-127.5 million or -39.7%, from €321.2 million in 2Q2019 to €193.7 million in 2Q2020, resulting from lower sales volumes of 124,200 metric tons or -39.8%, 187,700 metric tons in 2Q2020 vs 311,900 metric tons in 2Q2019, and a slight increase in average net sales price of +2.4€/t or +0.2%, 1,032€/t in 2Q2020 vs 1,030€/t in 2Q2019; and • Lower sales of energy of €-11.6 million or -47.2%, from €24.5 million in 2Q2019 to €12.9 million in 2Q2020, resulting from lower sales volumes of 105,400 MWh or -35.8%, 189,000 MWh in 2Q2020 vs 294,400 MWh in 2Q2019, and a decrease in average sales price of -15€/MWh or -18%, 68€/MWh in 2Q2020 vs 83€/MWh in 2Q2019. EBITDA decreased by €24.4 million, or -91.1%, from €26.8 million in 2Q2019 to €2.4 million in 2Q2020. This decrease was the result of lower sales of paper in volume, partly offset by higher margin on variable costs and lower fixed costs.

The EU has today released a report related to a Trade Barrier Regulation ("TBR") investigation launched following a complaint submitted by CEPI, the European association representing the paper industry. The report upheld the complaint finding that the measures imposed by Turkey on the imports of certain varieties of paper such as office paper, books, envelopes and paper used for direct mail marketing (otherwise known as uncoated wood free (“UWF”) paper) from the EU were inconsistent with both WTO and the EU-Turkey Customs Union rules. “CEPI takes pride in its strong commitment to free trade with its partners. The decision by the Turkish authorities to remove these unfair measures is applaudable; however this issue should never have been escalated in the first place. It is our expectation that the Turkish authorities stand by their obligations under the EU-Turkey Customs Union Agreement in the future” says Sylvain Lhôte, Director General at CEPI. Click Read More below for additional information.

Ahlstrom-Munksjö is exploring strategic options for its Decor business, including the possibility of divesting the business. The review process, first announced on September 17, 2019, has been impacted by the Covid-19 outbreak. In 2020, the Decor business saw strong customer demand with tailwinds from increased consumer spending on furniture and domestic refurbishments as a consequence of structural changes related to working from home accelerated by the Covid-19 pandemic. For the full year, comparable EBITDA increased, partly driven by higher raw material efficiency, and reached 14% of sales in the fourth quarter. In the past months, Ahlstrom-Munksjö has progressed with the carve-out of Decor with the objective of enabling the business to operate as a stand-alone entity. Decor has also been discussing opportunities for partnering with leading Chinese suppliers to create a more global leader with strong presence in Europe, South America and Asia.