Overview • Third quarter of 2020 reported operating income of $300 million, adjusted operating income of $347 million • Record-high adjusted lumber earnings of $387 million, driven by unprecedented surge in lumber prices and strong operational performance across all regions despite the impact of the coronavirus pandemic • Total net debt of $526 million at September 30, 2020, improvement of $331 million from prior quarter; available liquidity of $1.1 billion; net debt to capitalization of 18.6% at September 30, 2020 • Vida Group (“Vida”) completed acquisition of Bergs Timber Production AB (“Bergs”) sawmill assets • Cumulative cash deposits of $548 million on countervailing and anti-dumping duties at September 30, 2020
The Koehler group is investing in the European Circular Bioeconomy Fund (ECBF) with the aim of actively fostering the development of sustainable innovations and technologies. The ECBF is the first growth investment fund to be dedicated exclusively to projects in the field of the bioeconomy in Europe, including the accompanying circular economy. With a targeted fund size of EUR 250 million, the ECBF is set to become an important international financial instrument and to contribute to making Europe climate-neutral by 2050.
The circular economy conserves natural resources, and is one of the prerequisites for reaching the EU’s climate objectives in order to become climate-neutral by 2050. The Koehler Group is currently working on a range of innovations with a focus on circular economy concepts. “When developing innovations, we not only make use of internal expertise, but also rely on collaborations and start-ups. Our involvement in the ECBF will hopefully help to ensure that targeted funding is provided for promising technological developments,” Dr. Karrer continues. This not only pertains to technologies for Koehler Paper, but also to a range of other activities and business models within the Koehler Group.
Koehler Paper entered the flexible packaging paper market in 2019 with a EUR 300 million investment in a new manufacturing line for this type of paper, making this the largest investment in the history of the over 210-year-old company. The intention is for flexible packaging paper with functions specific to particular applications to replace plastic packaging in future. As Dr. Stefan Karrer, Chief Operating Officer at Koehler, says: “Koehler is specifically developing new products that meet the sustainability objectives of both its customers and of society as a whole, thereby establishing a leading role in the bioeconomy.” In doing so, the company is also tapping into new markets, for example thanks to its plans to start manufacturing bio-based materials for the rubber industry.