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Billerud FibreForm^® was launched in 2009 and has received several international innovation awards.
With its revolutionary elasticity, the paper can be shaped and replace fossil plastics as a packaging material.

Vision

We set the highest global standards for renewable, protective and attractive packaging solutions.

Business concept

Billerud offers demanding customers packaging material and solutions that promote and protect their products – packaging that is attractive, strong and made of renewable material.

STRATEGY

Billerud aims to lead the development of future packaging with a focus on function, design and sustainability.

2006 saw Billerud embark on its repositioning from a production-focused company to a customer– and solution-driven company with customer-focused development at its heart. This work has resulted in a continuously improving range of products and services that have enabled Billerud to break into new geographical markets and markets that were previously dominated by other packaging materials.

Natural partner

With Billerud repositioning itself in the value chain, the company is increasingly turning directly to end-customers, including brand owners, rather than just packaging manufacturers. Billerud has the packaging expertise to make a natural partner for customers and end-customers.

In order to offer innovative solutions, Billerud has set up several laboratories and development facilities to identify and solve the packaging problems of the future. Billerud continues to have high ambitions for future development. Demand for renewable, functional and attractive packaging is rising, creating large opportunities for Billerud.

Strategy for growth

Billerud’s strategy is based on two cornerstones for generating growth – World-class process efficiency and Customer-focused development.

Billerud works constantly to increase process efficiency in order to ensure lasting competitiveness and to minimise any waste of resources in production.

Billerud’s business development is based on customer insights and sustainability. If Billerud is to lead the development of future packaging, the company needs to understand and anticipate the needs of customers and end-customers at various stages, as well as the trends that dominate the market.

Three focus areas

Billerud sees attractive growth potential in three main areas: Food & Consumer Packaging, Sack Solutions and Fresh Foods.

Food & Consumer Packaging

Customers and consumers prefer packaging made from renewable materials over fossil plastics. Billerud develops and offers renewable materials that are competitive alternatives to fossil plastics in consumer packaging. Page 27

Sack Solutions

Billerud has a leading position in the market for sack paper and is thus well positioned to develop and offer customer-specific sack concepts primarily for the growing global construction industry. Pages 26-27

Fresh Foods

Every day tonnes of fresh produce are transported around the world, with a significant proportion never reaching the end-consumer. Inferior packaging is one cause of this loss. Billerud is helping to improve packaging for fruit and vegetables and so reduce expensive packaging-related wastage. Page 31

World class process efficiency

Customer-focused development

IMPLEMENTED 2010

focus next 5 years

Billerud works systematically to improve process efficiency and cost-efficiency to ensure long-term competitiveness and the ability to generate stable cash flow. Focus on quality at every level and on the development of suppliers of additives and logistics will contribute to the efficiency.

New logistics system implemented
Introduction of new production monitoring system started
New method of preparing and following up investments implemented to ensure efficient use of capital
Group-wide code structure for financial reporting drawn up
Continued work on improvement programme
New production organisation with increased focus on process efficiency introduced
New mill managers appointed at all three Swedish mills
Measures for more efficient utilisation of capacity at the mills in Skärblacka and Gruvön were identified and decided on

Continued energy efficiencies
Increased production by identifying and eliminating bottlenecks
Modernising chemical recovery at the mill in Skärblacka
Continued improvements in delivery reliability
Continued quality improvements to the customer offering
Improvement and provision of skills

Innovation

By building up in-depth knowledge about the whole value chain, Billerud is able to offer innovative solutions to customers’ packaging problems. Alongside technical advances, innovation is just as much about developing new business models and services. This work is conducted in cross-functional teams together with customers and suppliers, as well as stakeholders not usually associated with the forest industry.

Billerud FibreForm^® received China’s most prestigious industry accolade, the Technology Innovation Award, and the Coup de Coeur award at Europe’s biggest packaging fair, Salon Emballage
Billerud FibreForm^® attracted several prestige contracts, including with well-known international retailers
A new series of sack concepts was launched
Billerud’s development centre Box Lab scientifically proved the difference in durability and long-term performance between different grades of corrugated board
New testing method CCT10 introduced to measure paper performance in corrugated board
Launch of new packaging concepts made using paper and bioplastic from Billerud, including the new BioTex sack concept

Strengthen and develop implemented business development initiatives, for example by:
- Producing innovative new packaging materials and solutions in partnership with brand owners and retailers
- Continuing to develop Billerud FibreForm^® to optimise its use in more segments
- Continuing to work on producing bioplastic barriers that combine with paper to create a brand new degradable packaging solution
Seek out acquisitions that may increase the pace of growth for business development initiatives
Strive to take a position in the biorefinery field – production of forest-based fuels and new raw materials from the forest

Customer focus

By identifying and analysing customer and endcustomer need for profitable packaging solutions, Billerud can provide better service to markets that demand a range of different packaging solutions and grades of paper.

Billerud continuously works on improving its customer structure. The aim is to increase the proportion of sales to consumer industries in order to reduce cyclical effects and thus ensure more stable growth and profitability in the long term.

Several industry seminars were organised, including for:
- The sector for sugar, grain and flour packaging
- The Asian and European sack industry
- The corrugated board industry
The packaging design company Nine TPP successfully increased end-customers’ interest in ecofriendly packaging
A new sales organisation, Sustainable Packaging Solutions, was formed to increase the focus on end-customers
The proportion of end-customer contacts rose markedly, ensuring a better platform for continued product development
Increased sales to the consumer sector tissue

Increase sales to consumer segments in Europe and to industry in Asia and the Middle East
Increase focus on end-customers
Continue optimising the customer and market mix

Sustainability

Billerud’s processes are dominated by sustainable production from tree to finished product and on to customer delivery. By working with a natural and renewable raw material, Billerud helps to create sustainable development of the earth’s resources. Smart energy solutions and sensible use of resources are key factors for the company’s profitability as well as for global climate change.

Launch of new, fully degradable packaging concepts made using paper and bioplastic from Billerud
Increased marketing of Billerud FibreForm^®, which can be shaped into three-dimensional packaging, has opened up new scope to manufacture climatesmart packaging solutions
In order to increase the proportion of certified wood raw material, Billerud developed a system for certifying individual forest owners, a system that is set to be approved in 2011

The materials and solutions offered to customers must be eco-friendly and resource-efficient
Lower emissions of fossil carbon dioxide in the manufacturing processes and in transport
Ongoing assessment of business partners from a sustainability perspective
Further improve the work environment, with safety as a key aspect
The organisation must have diversity at all levels
Further improve employee skills and focus on leadership development