Due to current circumstances regarding the Covid-19 virus, BillerudKorsnäs postpones the major parts of the maintenance shutdown initially planned to be held week 13, 2020 at Gruvön, Sweden.
“We have decided that during the current circumstances it is not possible to follow through the maintenance shutdown as initially planned. Further, we must also consider the risk of infection for our employees, but also the many suppliers and contractors who were scheduled to come to Gruvön,” says Ivar Vatne, CFO at BillerudKorsnäs.
The additional negative financial effects of postponing the maintenance shutdown is calculated to SEK 40-100 million ($4-10.1 million) for the full year of 2020. BillerudKorsnäs closely monitors the development and is now planning, together with contractors, to carry out the maintenance shutdown in Gruvön during the 3Q 2020.
The ramp-up of KM7 continues to be BillerudKorsnäs’ number one priority for 2020. An additional consequence of the postponed maintenance shutdown is that BillerudKorsnäs adjusts the previously communicated negative earnings interval by SEK 100 million ($10.1 million) to SEK 250-450 million ($25.3-45.5 million) for the full year 2020.
Other financial effects related to Covid-19 have so far been fairly limited. At this stage, it is too early to estimate to what extent Covid-19 will affect BillerudKorsnäs long-term, the company said.
BillerudKorsnäs is one of the leading manufacturers of packaging paper made from virgin fibers.
