CEO comments, Jan Åström: “We achieved strong organic growth of over five percent in the quarter and were able to maintain our operational result despite the accelerated cost inflation in some of our key raw materials. Our performance was once again led by excellent results in the Filtration & Performance, and Industrial Solutions business areas. We will continue to work on our pricing to mitigate the cost pressure and address the challenges in the coated one-sided papers business. The integration work following the merger is gaining momentum as we achieved an annual run rate of about EUR 17 million in synergy benefits by the end of the quarter. We are now fully comfortable that we can exceed the original target of EUR 35 million and estimate that annual synergy benefits of above EUR 40 million can be reached by the second quarter of 2019. Click Read More below for additional information.
Following a period of downward price pressure last year, the softwood pulp market stabilized in early 2016 and the outlook is now improving. As a result, a number of global price initiatives have already been announced.
“We know from experience that the spring is typically characterized by stronger demand than the start of the year, and that this is also a time for maintenance stoppages in Europe. That’s why we anticipate that the market will tighten even further”, said Magnus Björkman, President of Södra Cell International.In the expectation of a stronger global market and solid demand, Södra will increase its market price for NBSK deliveries in Europe to USD 810/tonne, effective from April 1st 2016.