Products and Markets

Packaging Paper*

*Packaging Paper includes market pulp, which accounts for approximately 15% of the sales volume.

Kraft paper (18% of volumes)
Food and beverages Industrial Consumer and luxury goods Medical and hygiene

Customers

Driving forces and market outlook

BillerudKorsnäs’ position

Converters and manufacturers of packaging for the food industry
– around 3/5 of the volume

  • Packaging for flour, sugar, grain, etc.
  • Open bags (bread, etc.)
  • Carrier bags
  • Flexible packaging
  • Formable packaging

Converters and manufacturers of industrial applications
– around 2/5 of the volume

  • Medical packaging
  • Release liners for stickers, stamps or hygiene products
  • Steel interleaving

Increased focus on sustainability is positive

  • Eco-awareness and political decisions against fossil plastics strengthen the position of paper packaging
  • Increased demand for product optimisation
  • Prosperity is increasing and driving demand for hygiene products, medical products and disposable consumer packaging
  • The economic growth in Asia is driven by manufacturing, with China now being the world’s largest steel producer
  • Increased demand for attractive packaging
  • Paper has unique environmental properties and is renewable, compostable and biodegradable

Leading producer of strong, high-quality kraft paper of primary fibre in Europe

Main competitors

The primary competition comes from plastic packaging solutions

Other major kraft paper producers include Ahlstrom, Arjowiggins, Mondi, Nordic Paper and Papel Aralar

Sack paper (12% of volumes)
Food and beverages Industrial

Customers

Driving forces and market outlook

BillerudKorsnäs’ position

Converters and sack manufacturers that supply producers of powdered goods such as

  • Building materials
  • Minerals and chemicals
  • Food

The cement industry, with its own sack production and integrated filling processes

Around 2/3 of sack paper sales goes to construction material, industrial minerals and chemicals

The majority of BillerudKorsnäs’ white sack paper is sold in Europe, while around 3/4 of brown sack paper is sold to growth regions outside Europe, predominantly North Africa and South-East Asia

Good sack quality creates added value

  • Increased construction in growth regions is boosting demand
  • Requirements for cost reduction, improved functionality and more rapid air release increase demand for high-porosity sack paper
  • In-store sales are placing greater demands on the appearance and printability of sacks
  • Continued expansion in the construction industry, with increased consumption of cement, etc. particularly in Asia and other growth markets

Global leader in high-porosity sack paper of primary fibre

Main competitors

The primary competition comes from plastic sack solutions and bulk (i.e. direct filling from trucks)

Other major sack paper producers are Mondi, Canfor, Segezha Packaging and Smurfit Kappa

Consumer Board

Liquid packaging board (31% of volumes)
Food and beverages

Customers

Driving forces and market outlook

BillerudKorsnäs’ position

Converters of packaging for

  • Milk
  • Juice
  • Other beverages and liquid foods
  • Preserved foods

Improved living standards fuel demand

  • Improved living standards and a growing middle class, mainly in Asia and South America
  • Customers’ increased demands on print quality on finished packaging
  • Demand for a hygienic, high and even product quality
  • Strong and still increasing eco-awareness in consumer industries
  • Eco-friendly alternatives offer a competitive advantage to fossil plastics in consumer industries

One of the world’s leading liquid packaging board suppliers

Main competitors

Other major suppliers of liquid packaging board are Klabin, Rank Group, Stora Enso, MeadWestvaco and International Paper

There is also competition from other packaging materials, mainly plastic

Cartonboard (4% of volumes)
Food and beverages Industrial Consumer and luxury goods Medical and hygiene

Customers

Driving forces and market outlook

BillerudKorsnäs’ position

Converters of packaging for

  • Exclusive beverages
  • Beauty and healthcare products
  • Confectionery
  • Home electronics and industrial goods
  • Refrigerated and frozen foods

Increased consumption is positive for cartonboard

  • Increased focus on the appearance and design of packaging, which strengthen products’ brands
  • Improved living standards and a growing middle class in growth regions
  • Increased private consumption in the premium segment where lifestyle consumption fuels growth
  • Strong and still increasing eco-awareness in consumer industries

Major producer of primary fibre-based cartonboard in Europe

Main competitors

Other suppliers of cartonboard in the premium segment are Iggesund, Metsä Board, Stora Enso, MeadWestvaco and International Paper

Containerboard

Fluting (12% of volumes)
Food and beverages Industrial Consumer and luxury goods Medical and hygiene

Customers

Driving forces and market outlook

BillerudKorsnäs’ position

Producers of

  • Corrugated boxes for fruit and vegetables, about 2/3 of the fluting volume
  • Packaging for components for the automotive industry, white goods and electronics
  • Packaging for directly-packaged fast food
  • Transport packaging in corrugated board

Optimised structure cuts wastage

  • Increased demand for optimised packaging that protects the goods
  • Increased awareness of the importance of packaging for the environment
  • Globalisation has brought about increased transport of goods
  • Growing population, stricter environmental requirements and greater focus on profitability and on reducing resource wastage increase demand for optimised packaging

Quality and market-leading producer in Europe in the top segment with a strong position in fruit and vegetables

Main competitors

The primary competition comes from recycled fibre-based fluting

Other major producers of primary fibre-based fluting are Stora Enso, Mondi and Powerflute

Liner (8% of volumes)
Food and beverages Industrial Consumer and luxury goods Medical and hygiene

Customers

Driving forces and market outlook

BillerudKorsnäs’ position

Producers of

  • Primary packaging for e.g. consumer goods such as perfume, exclusive beverages, confectionery and also home electronics
  • Secondary packaging of corrugated board
  • Shelf-ready packaging

Increased focus on the sales value of packaging

  • Consumers’ changing purchasing choices require packaging with excellent print-ability that stands out on the store shelf
  • Increased demand for sustainable packaging solutions
  • Increased focus on product safety and hygiene
  • Increased focus on materials savings, packaging appearance and good quality ensures a sustained stable trend
  • Product safety is expected to be a future issue, which bodes well for demand for primary fibre-based liner

Market leader in Europe for pure white kraftliner (low grammage) and one of the leading suppliers of coated White Top Liner globally

Main competitors

Competition from specialist players on the low-grammage liner market including Metsä Board and Mondi

Metsä Board is a major producer of coated WTL. Competition also comes from coated and uncoated White Top Testliner (based on recycled fibre)

 

 

Last updated: 2012-11-30