1. Profitable pure-play paperboard company
Metsä Board has gone through a substantial transformation process from a loss-making paper producer into a profitable pure-play paperboard company. We focus only on premium fresh fibre paperboards that are ideal for consumer goods, retail-ready and food service applications. Our main products are folding boxboard and white fresh fibre linerboards. Annual growth in premium fresh fibre paperboards is estimated to be 3–4 per cent globally for at least the next five years. We have had a solid financial performance with an efficient capital structure.
2. Strong market position
Metsä Board is a leading European producer of premium fresh fibre paperboards including folding boxboards, food service boards and white linerboards. Metsä Board has established its strong market position in Europe with long-lasting customer relationships – especially with brand owners. Metsä Board is seeking the most rapid growth in the Americas in the coming years. Today, we are among the biggest importers of folding boxboard and coated white-top fresh fibre linerboard into the USA. We see several growth drivers in the Americas: limited local availability of premium, lightweight folding boxboard; non-integrated converters looking for alternative suppliers in paperboard, and strong demand in food service applications made from fresh fibre paperboards. In addition, the rise of discounters and growing e-commerce are increasing demand for high-end white-top fresh fibre linerboards.
In the Asia-Pacific region, we are focusing on premium segments and aiming for moderate growth, primarily in cooperation with brand owners.
3. Global megatrends are driving stronger demand for sustainable packaging
Global megatrends are shaping businesses and setting new requirements for packaging in terms of sustainability, safety and quality. Metsä Board’s paperboards meet all these requirements.
The importance of resource efficiency is increasing, which is reflected in lifecycle and circular economy thinking. Regulation increases obligations, and the requirements imposed on product safety are increasing, especially in food packaging. Metsä Board supports sustainability by reducing its use of raw materials, water and energy in its production. Our product safety relies on using pure fresh fibre from sustainably managed forests. The company has been recognized several times for its sustainability performance.
Our objective is to support and promote the sales of our customers' products, to create new growth opportunities for them, and to reduce the costs and environmental impact arising from packaging materials. Metsä Board does active product development with its key customers and partners. We are continuing to investigate and develop new lightweighting solutions and bio-based barrier solutions.
4. Metsä Board is a growth company
Our goal is, that annual deliveries of our paperboard products grow faster than the average market growth. Global demand for high-quality paperboard made from fresh fibre is expected to grow by approximately 3–4 per cent a year. In 2017, Metsä Board's paperboard deliveries grew by 15 per cent from the previous year.
Metsä Board started up a new folding boxboard production line at the Husum mill in Sweden in 2016. The 400,000-tonne annual capacity will be marketed primarily to the Americas and for food service packaging globally.
The new folding boxboard production line in Husum will be fully utilized by the end of 2018. The Husum integrated mill has the potential to improve its profitability by EUR 100 million from the year 2016 to year 2019. In addition, Metsä Board started up a new extrusion coating line in Husum in April 2017. PE-coated paperboards will generate sales in the food service segment.
5. Self-sufficiency in pulp
Metsä Board has self-sufficiency in pulp, which ensures both quality and availability in production. Both chemical and mechanical pulps are used in the production of our paperboards. In addition to the company’s own pulp production, Metsä Board owns 24.9 per cent of its sister company, Metsä Fibre. Metsä Board’s total pulp balance is over 500,000 tonnes a year long. Excess volumes are sold to the market.
Metsä Board invested EUR 24.9 million in equity in Metsä Fibre’s new bioproduct mill, which started-up in August 2017. With this investment, Metsä Board’s pulp balance will grow by 200,000 tonnes a year.