BillerudKorsnäs and UPM have entered into an agreement that will extend the supply agreement for pulp, steam and electricity for the production at BillerudKorsnäs’ mill in Pietarsaari, Finland.
The original agreement was signed in 2012 in conjunction with BillerudKorsnäs’ acquisition of the Pietarsaari mill and was initially scheduled to expire in June 2022. The now agreed new supply contract is based on market conditions and will enter into force in June 2020. As part of the renegotiation, the parties have agreed that BillerudKorsnäs will pay a compensation of Euro 15 million to UPM during the coming year in three instalments. A provision of this amount will be made in the results for the 2Q 2020 and will then be recognized as a cost affecting comparability.
BillerudKorsnäs is one of the leading manufacturers of packaging paper made from virgin fibers.
