NORPAC Announces Price Increase on Norbrite Grades

UPM is aiming to find sustainable solutions for replacing fossil-based raw materials and offering environmentally sound alternatives. One of the most recent innovations is UPM Formi EcoAce biocomposite, launched at the beginning of 2020. This revolutionary biocomposite is almost 100 % based on renewable resources. UPM Formi EcoAce contains certified wood and cellulose fibers as well as certified renewable PP polymers from SABIC’s TRUCIRCLE™ solutions. The renewable PP polymers are made of wood-based feedstock from UPM Biofuels’ production. UPM’s BioVerno production is certified by both ISCC PLUS and RSB, and the sustainability of the material has been verified accordingly. At the beginning of 2020, Akvila Cutlery launched a next generation reusable cutlery made from total wood-based raw materials, UPM Formi EcoAce. The cutlery is made from softwood fibres and wood waste derived ISCC-certified bio-polypropylene, implementation of zero-deforestation. The material does not compete with food production as many other bio-based materials, which is totally unique in the world.

*BillerudKorsnäs has entered into an agreement to acquire Verso for a purchase price of approximately USD 825 million in cash, corresponding to USD 27.00 per share. *Verso is a leading producer of coated papers in North America with reported net sales for the last twelve months ended 30 September 2021 of USD 1 264 million and adjusted EBITDA of USD 158 million. *The purchase price corresponds to an enterprise value / adjusted EBITDA multiple of approximately 6x for the last twelve months ended 30 September 2021. The acquisition will immediately be accretive to earnings per share and create significant shareholder value over time with a more profitable product mix. *BillerudKorsnäs will build one of the most cost-efficient and sustainable paperboard platforms in North America by converting some of Verso’s assets into paperboard machines with an estimated capex of up to SEK 9 billion. *The acquisition and transformation will be financed through a combination of a rights issue of up to SEK 3.5 billion, additional debt and operating cash flow. *The acquisition is expected to close in the second quarter of 2022, subject to the approval of Verso’s shareholders as well as the receipt of applicable regulatory approvals and satisfaction of other customary closing conditions.

⚫ Revenue increased by 7.1% year-on-year to a historical high of RMB 30.9 billion ⚫ Sales volume achieved record high of 8.6 million tonnes ⚫ Net profit1 was RMB 4.0 billion; a year-on-year increase of 75.6% ⚫ Gross profit margin of 20.9%; a year-on-year increase of 3.8 percentage points ⚫ Net profit margin of 13.0%; a year-on-year increase of 5.1 percentage points