September 16, 2019 / 8:42 AM / 2 months ago

Swedish packaging firm BillerudKorsnas launches savings plan

STOCKHOLM, Sept 16 (Reuters) - Swedish packaging paper and carton producer BillerudKorsnas said on Monday it would launch a cost reduction programme aiming for around 600 million crowns ($62.5 million) of savings a year starting from 2021.

The company said it would eliminate up to 300 jobs, mainly in administration, pursue purchasing-related savings and efficiency improvements throughout the business. In its latest earnings update, BillerudKorsnas said its first half workforce averaged at just over 4,600.

“This programme will ensure long-term efficiency and profitability,” Chief Executive Petra Einarsson said in a statement.

BillerudKorsnas said it expected the programme to bring positive effects of around 250 million crowns next year.

It also raised its estimate for the negative full-year effect on earnings before interest depreciation and amortization (EBITDA) from the start-up of the new KM7 board machine at its Gruvon mill to 650 million crowns from a previous forecast of 500 million.

The adjustment is due to lower pace of KM7 start-up, it said. BillerudKorsnas said it expected the effect in the fourth quarter and the full year 2020 to be unchanged.

The company’s shares fell 5.5% in early trade.

$1 = 9.6034 Swedish crowns Reporting by Helena Soderpalm and Tommy Lund Editing by Tomasz Janowski

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