 |  |  |  | Billerud’s kraft paper is produced using 100 % primary fibre from Nordic forests. This unique raw material results in a clean paper with high strength, advanced printability and good runnability in customers’ machines. Through development, large-scale production and good logistics, customers always get the best and most economic paper solutions.
Today, Billerud serves around 700 customers in its Packaging & Speciality Paper business area, which is further divided into kraft paper and sack paper. Most of the customers are European manufacturers of paper-based protection and packaging solutions for a wide variety of applications. Even though Europe is by far the largest market, contacts with Asian countries are growing.
Packaging with a protective barrier
Today there are over 40 different applications for Billerud’s wide range of kraft paper. A number of strong areas with good growth potential have been identified and a detailed segment strategy has been established that describes the segment’s overall attractiveness in terms of market structure, profitability and quality requirements. The largest area within technical kraft paper is flexible packaging where the paper is combined with aluminium or plastic. The packaging protects foods such as soup powder, spices, butter and sauces against air, light and dampness.
Secure protection against micro-organisms
The combination of high strength and carefully designed porosity makes the paper an excellent choice for medical packaging. The paper allows the sterilising agent to pass through but presents a long-term barrier against micro-organisms. Billerud’s range features qualities for the most demanding sterilising and packaging methods, including disposable medical packaging for injection needles, catheters and gloves. The excellent suitability of the paper for medical packaging creates favourable opportunities for growth.
Growing interest in thin release liner
An expanding area is release liner, the paper used for self-adhesive products such as pads, pantyliners, tape, insulation material and decals. The tight, smooth and strong surface protects the silicone from passing through. In 2005 this product strengthened its position on the market and Billerud is now one of the world’s leading manufacturers of release liner. The product has been developed with lower grammages from 40 g/m2 to 35 g/m2. The low grammage means less material is consumed without harming the beneficial properties. Sales staff and technicians have close contacts with customers in the conversion chain. By working together, sharing knowledge and swapping experience, Billerud will continue to develop release liner as a thinner, but just as strong a product.
High speeds with interleaving
In Europe there is strong demand for white interleaving paper for stainless steel and interest is growing in Asia for this product. The range of technical kraft paper includes qualities well suited for packaging steel. The strong, smooth and clean surface is free of particles and is chemically neutral. This reduces the risk of damaging the steel reels or of the steel burning onto the rolling plates. Furthermore the paper has excellent runnability, which enables modern steel production to maintain a fast pace. Over the years Billerud has built up wide-ranging knowledge of the steel process which it shares with customers so that they can use the full potential of the paper. |
|  |
 |  |  |  | Shopping with attractive carrier bags
Appearance is important, and an elegant and exclusive carrier bag is a special part of a fashion store’s brand and marketing. An attractive carrier bag might conceal a less attractive bag and act as a good advertiser of the store’s image. Carrier bags made of Billerud’s paper are appreciated for their exceptional printing and laminating properties. The wear and tear strength of the surface means that even heavy objects can be carried. During the year more converters requested FSC-certified paper for their eco-friendly carrier bags.
Economic and environmental sacks
The sack paper range includes properties for all types of sacks. Billerud’s sack paper has a unique breathing capability, which means that the paper does not need to be perforated to release air. This property is called porosity and the result is a sack that can be filled quickly without creating dust. This creates advantages for the converters, distributors and end-users who carry bags of cement, for example, home from the store. And of course, paper is much more environment-friendly than plastic.
Sack paper withstands tough handling
Each year customers all over the world fill sacks made of Billerud’s paper with millions of tonnes of industrial products, food and animal feed. These sacks are often given rough treatment and exposed to extreme climates. The contents varies, from hazardous chemicals to sugar, flour, rice and potatoes. Billerud’s paper grades are approved according to the norms of food packaging. The company’s sack paper is also approved for transport of hazardous goods.
Billerud’s QuickFill® paper is one of the world’s most economic packaging solutions for powder-based products. Using pressurised air these valve sacks are filled quickly with cement, building materials or chemicals. The filling methods place extremely high demands on the sack paper’s strength and porosity. Sacks made of Billerud QuickFill paper are filled swiftly and safely. The paper also has a lower grammage than competing products.
Even faster filling with QuickFill® Plus
Billerud is a world-leading producer of sack paper and invests large resources in research and development. In 2005 Billerud, together with converters and end-users, further developed the QuickFill paper grade to produce a new paper called QuickFill Plus. This sack paper provides superior filling economy in the form of faster and cleaner filling processes and smaller, more compact sacks. The latter means lower paper consumption for the customer.
Better economy with single-leaf sacks
In Europe the trend is away from 50 kg sacks to 25 kg sacks. QuickFill Single is a high-porosity sack paper in white and brown developed in close co-operation with keycustomers. The aim is to create value throughout the value chain. The paper makes it possible to manufacture single-leaf sacks that use less material than most single-leaf sacks. 110 g QuickFill Single sacks consume 20 % less material than the best twin-leaf sacks on the market. That means lower raw material costs and transport volumes and more efficient storage handling.
Increased interest in white sack paper
On consumer markets the appearance of packaging has become more and more important. Fertiliser and seeds for gardens, pet food and ready-mixed building materials are examples of new consumer packaging with expensive four-colour print. The need for selling surfaces boosts demand for sack paper with good printability. Billerud today is a market leader for its strong, smooth-surface white sack paper that also offers excellent runnability in modern converting machines.
Customer service on a broad front
In 2004 specialists from different departments formed segment teams that offer comprehensive expertise on the entire chain from paper production to the end user. The aim is to get close to the end user in each application area. The customer might be a flour or sugar producer who wants a fully-automated form & fill process or a giant clothes store or supermarket wanting strong carrier bags.
Technical service for customers
By listening carefully to market requirements and identifying profitable concepts there are good opportunities for finding new application areas. Today Billerud manages several projects within exciting niches for new products. Great importance is attached to providing customers with technical support and service, managing customer stocks and deliveries and sharing knowledge of the refinement process. Through close co-operation with customers and other players, Billerud participates actively in developing new, innovative packaging solutions.
Earnings performance
Compared with 2004, sales turnover rose by 2% to MSEK 3,683 (3,613), while the profit fell by 30% to MSEK 339. Deliveries were up 2%. The fall in profit was due to changed exchange rates and higher variable costs. |
|  |
|
|