Metsä Board's comparable operating result in 2016 was EUR 137 million
Mika Joukio, CEO:
“Our paperboard deliveries in 2016 grew by 12 per cent, which clearly exceeds the average growth rate of the premium fresh fibre paperboard market growth. Our sales declined as planned due to the reduced paper business. Our comparable operating result weakened compared to the previous year and was EUR 137 million. The profit development of our Finnish mills was stable overall, and five mills out of seven achieved new records in their annual production. Our operating result was burdened by the start-up of Husum's new folding boxboard production line, the technical issues in the new production line and the pulp mill, as well as the lower price level of the start-up volumes of the new folding boxboard. The decline in the pulp market price also had a negative impact on our result.
The restructuring work, which has lasted for several years, was concluded when the last fine paper reels were produced at the Husum mill in Sweden. We also discontinued the loss-making wallpaper base business at the Kyro mill in Hämeenkyrö, Finland. From now on, we will produce only premium fresh fibre paperboard for consumer goods, retail-ready and food service packaging.
At Husum, we started the installation of the extrusion coating line for food service packaging. The line will be commissioned in 2017. We will also continue the development of other barrier solutions. We will closely evaluate their commercial potential.
Technical problems in the folding boxboard production line at Husum have now been solved. With determined work carried out over several years, we have created for ourselves a growing market position in North America, where there is good demand for Metsä Board's premium paperboards. We are therefore ideally placed for continued profitable growth and increasing our market share in North America. Europe will continue to be our biggest and most important market; here, we aim to keep our leading position as a producer of folding boxboard with healthy pricing.”
Source: https://newsclient.omxgroup.com/