Billerud Launches Major Cost-Saving Program and Advances Strategic Projects in Q3 2025

Billerud is taking decisive action to address diverging market realities between its North American and European operations, according to its latest interim report and executive commentary. The company has announced a comprehensive cost-saving program targeting annualized savings of SEK 800 million, including the potential reduction of up to 650 roles, focused sharply on Region Europe and Group functions globally. The initiative is expected to deliver noticeable positive impacts beginning in Q1 2026 and reach full effect by the end of next year, positioning Billerud for long-term competitiveness and profitability.​​ During the quarter, Billerud made significant progress on its flagship Evolution modernization program: the rebuild of the Escanaba woodyard was completed in October. The upgrade features new debarking technology and enhanced conveyor systems, boosting safety, chip quality, capacity, operational efficiency, and sustainability.​​ Product innovation also took center stage. Two new cartonboard grades—CrownBoard Light and CrownBoard Carry—were launched to meet growing demand for recyclable, high-performance packaging, especially in food and beverage applications. In North America, new products Tribute and Voyager are attracting strong customer interest, with steady momentum in deliveries and market trials.​​ Annual investments remain substantial, with total 2025 capex projected at SEK 2.9 billion (including SEK 0.7 billion for strategic projects and SEK 2.2 billion for maintenance). The Evolution program and base maintenance investments are expected to continue at similar levels in 2026. Significant maintenance shutdowns were executed this quarter at Gävle, Karlsborg and Escanaba, incurring about SEK 360 million in costs, primarily to match production with current demand and upgrade facilities for long-term performance.​ Looking ahead, Billerud will pursue continued innovation and portfolio upgrades, streamline operations through simplification and automation, and develop a new global function for Innovation and Product Application Development, spearheaded by Anna Jonhed from March 2026. The strategic shift in North America toward packaging materials is progressing rapidly, leveraging US manufacturing advantages following recent tariffs, while European market weakness will be met with aggressive cost controls and efficiency measures.​​ This quarter’s initiatives firmly position Billerud to strengthen its resilience, competitiveness, and market leadership as the industry confronts ongoing volatility in Europe and steady growth prospects in North America.