Lecta Increases Prices of Thermal and Carbonless Papers for New Orders

Containerboard production at Norske Skog Golbey in France is expected to start during the first quarter of 2025, previously the second half of 2024. Commissioning of roll warehouse, containerboard winder, and the effluent station is ongoing. In addition, pre-commissioning (I/O check) has started for the OCC drum pulper and will start in early October for the paper machine (PM1). The BCTMP main study at Norske Skog Saugbrugs has commenced with support from engineerng consultants and vendor dialogues. Final investment decision is still expected during the first half of 2025.

Average input costs were stable sequentially and cost control was strong across the business. Currency movements had a net negative impact on underlying EBITDA compared to the second quarter, driven by a weaker US dollar, impacting a number of the Group's globally traded products, coupled with a weaker Russian rouble and Turkish lira. Given prevailing exchange rates, we anticipate a further net negative currency impact in the fourth quarter. During the quarter, planned maintenance shuts with an estimated impact on underlying EBITDA of around €35 million (2019: €40 million) were carried out successfully. Based on prevailing market prices, we continue to estimate that the impact of planned mill maintenance shuts on underlying EBITDA for 2020 will be around €100 million (2019: €150 million), with the fourth quarter impact expected to be around €55 million (2019: €30 million). Our major capital investment projects are progressing according to plan. The €67 million capital investment project to convert a containerboard machine at Štětí (Czech Republic) to become fully dedicated to the production of speciality kraft paper for shopping bag applications is scheduled to be commissioned during the fourth quarter. This additional capacity (75,000 tonnes) further supports our retail customers in their efforts to replace unnecessary plastic as they transition to more sustainable packaging solutions that contribute to the circular economy.

Our Kingsport Mill was named the 2024 Business Recycler of the Year by the Tennessee Recycling Coalition (TRC) during the organization’s annual Tennessee Sustainability Conference. The award is given annually to businesses that practice outstanding leadership in recycling and waste prevention. The Kingsport Mill award recognizes Project Smoky — the conversion of the facility’s uncoated freesheet paper machine into the company’s first 100-percent recycled containerboard facility. The mill, which resumed operations in January 2023, is home to the second-largest recycled containerboard machine in North America and is the largest recycled manufacturer in the state of Tennessee. Kingsport Mill now produces approximately 600,000 tons of high-quality recycled linerboard and corrugated medium every year.