BillerudKorsnäs decides on closing Tervasaari paper machine

BillerudKorsnäs has decided on streamlining their production structure through a
closure of the paper machine in Tervasaari, Finland, latest during Q3 2016.
BillerudKorsnäs will thereby entirely leave the Tervasaari production site. The
decision has been made after union negotiations and is based on unsatisfactory
profitability levels.
Within BillerudKorsnäs Business Area Packaging Paper, a wide range of kraft
papers and packaging solutions are offered for use in food packaging, medical
packaging and packaging of construction materials - to mention a few application
areas. Under the business area strategy “Selective Growth”, BillerudKorsnäs is
taking steps to grow within attractive segments of the packaging paper area and
to streamline its production structure.

The BillerudKorsnäs production at Tervasaari consists of one paper machine with
a capacity of 100 000 t/a of machine glazed papers, MG papers. The paper machine
is unintegrated to pulp production which results in an unfavorable cost
position, despite the fact that the machine is among the largest of its kind.

The decision means that the production at the machine will stop latest during Q3
2016.

In August this year, BillerudKorsnäs started a feasibility study investigating
among other things the potential of moving the Tervasaari machine to Skärblacka
in Sweden. Skärblacka would offer integration to pulp production and, with the
Tervasaari machine, Skärblacka would strengthen its position as one of the
world's most efficient production units for white MG papers. The investigation
is on-going and will be finalized during the first half of 2016.

“The closure of production at Tervasaari is a first step in streamlining our
production structure. There is right now intensive work being done in the form
of feasibility studies that will lead us in our further development of our
production structure. The machine in Tervasaari is one of the largest of its
kind and our staff has done a great job to improve profitability through
creative ideas and committed efforts but unfortunately this has not been enough
due to external factors”, says Christer Simrén, COO and Executive Vice
President, BillerudKorsnäs.

The closure will lead to restructuring costs of approximately SEK 100 million.
These costs will be included in the reporting for Q3 2015 under “Other units”.

For more information, please contact:

Henrik Essén, SVP Communication and Sustainability, +46 (0)8 553 335 00

The information is such that BillerudKorsnäs Aktiebolag (publ) is obligated to
publish under the Swedish Securities Market Act. Submitted for publication at
11.00 CET, October 15th 2015.
BillerudKorsnäs provides packaging materials and solutions that challenge
conventional packaging for a sustainable future. We are a world leading provider
of primary fiber based packaging materials and have customers in over 100
countries. The company has 8 production sites in Sweden, Finland and the UK and
about 4 300 employees in over 13 countries. BillerudKorsnäs has an annual
turnover of about SEK 21 billion and is listed on Nasdaq Stockholm.
www.billerudkorsnas.com