Kruger Products provided an update on the new No. 8 Paper Machine (PM8) Project at its Crabtree Plant and invited a few media and partner representatives in Lanaudière to visit the soon-to-be-completed project. The Company also took the opportunity to reveal its recent acquisition of a new $12-million winder, which brings investment in new production equipment at the Crabtree Plant to $67 million over the past year. “This new and more efficient paper machine and the additional winder will give the Crabtree Plant plenty of room to grow for many years to come, which is very motivating for our employees,” said Mario Gosselin, CEO of Kruger Products L.P. “We are particularly pleased with the progress of this project that we expect to complete on time and on budget.” By the time the 11-month project is completed, it will have required 180,000 hours of work by 260 people and generated an estimated 200 indirect jobs. Construction of the new building housing PM8 alone will have generated $7 million in labour expenses. Click Read More below for additional detail.
In 3Q2019, the net sales of Coated Woodfree were €143 million vs €180 million in 3Q2018, a decrease of €37 million or -20%. The Ebitda at €4 million was lower than in 3Q2018 (€8 million). This decrease was mainly due to a reduction in sales volume and an increase in distribution costs, partly offset by an increase of net sales price and reductions in variable production costs and fixed expenses.
In 3Q2019, the net sales of Specialties were €114 million vs €122 million in 3Q2018, a decrease of €8 million or -7%. The Ebitda at €8 million was lower than in 3Q2018 (€17 million). This decrease was mainly due to reductions in sales volume and net sales price, an increase in variable production costs, partly offset by decreases in distribution costs and fixed expenses.
For the third quarter ended 30 September 2019, Lecta had revenue of €316.5 million versus €366.7 million in the third quarter ended 30 September 2018, a decrease of €50.1 million or -13.7%.
EBITDA decreased by €12.3 million, or -47%, from €26.2 million in 3Q2018 to €13.9 million in 3Q2019. This decrease was the result of lower sales of paper in volume, higher outsourcing, and overhead costs, partly offset by lower net energy cost, costs of packaging, distribution, selling variable, labor, maintenance, and production consumables, in a context of higher unit gross margin.
much more detail at: https://cmspro.lecta.com/DownloadAreaDocuments/Lecta_Group_Management_report_30_09_2019.pdf