Domtar Expanding to Become a Leading Airlaid Nonwovens Provider

Today the Norway’s Prime minister Jonas Gahr Støre and the Minister of Trade and Industry Jan Christian Vestre visited Viken Skog’s Follum mill in Hønefoss. The plan of BillerudKorsnäs and the Norwegian forest owner group Viken Skog to establish production of bleached chemi-thermomechanical pulp (BCTMP) in Norway attracts large interest. Through a long-term partnership with Viken Skog, BillerudKorsnäs will secure both tailormade BCTMP and wood supply supporting the strategy for sustainable and profitable growth in paperboard. The Follum mill already has much of the infrastructure needed to establish such a production line and is in an area with competitive and sustainable wood supply and good transports to BillerudKorsnäs’ board mills. The ongoing feasibility study is expected to be completed during the first half of 2023. BillerudKorsnäs strategy has a clear goal - to deliver sustainable growth in packaging materials. To get the opportunity to develop the new mill in Follum as a state of the art sustainable operation is in line with our strategy. We aim for negative CO2 footprint in production with bio gas and carbon capture, says Christoph Michalski, President and CEO at BillerudKorsnäs.

"I am confident that Kevin Kuznicki, with his experience from a variety of positions and industries, is the right person to lead Billerud's journey in the US going forward," says Christoph Michalski, President and CEO at Billerud. “I feel very fortunate to have the opportunity to serve as President for Billerud North America and am optimistic about our future. I am honored to work with such a talented team across the company and look forward to continuing our journey and accomplishing great success together,” says Kevin Kuznicki, incoming President of North America at Billerud. Kevin Kuznicki succeeds Robert Kreizenbeck, who left the company this month.

Net sales were $1.53 billion, down 14.9 percent. Sales were down 12.0 percent ex. currency, and down 13.7% on an organic basis. Reported operating margin declined 350 basis points to 8.1 percent. Adjusted EBITDA margin declined 60 basis points to 14.0 percent, while adjusted operating margin declined 140 basis points to 10.7 percent. Reported net income was $0.95 per share, compared to $1.69 per share in the prior year second quarter. Adjusted net income was $1.27 per share, down 26 percent, above the company’s expectations, reflecting a sales decline below the low end of its outlook range in April. Year-to-date free cash flow was $109 million, down 34 percent. Free cash flow in the second half of the year is expected to accelerate reflecting normal seasonality as well as higher net income and an increased focus on working capital productivity.