Demand from the packaging industry in Europe was subdued in the third quarter of 2025 and Billerud expects the adverse conditions on the markets for its board products to continue in the fourth quarter.
In its financial report for the third quarter of 2025, Swedish pulp, paper and board manufacturer Billerud has highlighted problems with structural overcapacity on the board market in Europe. Billerud attributes this to recent capacity expansions and the reversal of trade flows following the introduction of US import tariffs, among other things. In Europe, the industry is facing challenging market conditions, including muted packaging consumption, cost inflation and negative currency effects, the company said.
In response to adverse market conditions in Europe, Billerud has reduced output to meet demand, with the majority of the curtailments taking place at the board mills in particular. Among other things, maintenance downtime at the Gävle and Karlsborg mills in the third quarter had an impact on costs.
Third quarter sales in the cartonboard segment fell by 22 per cent year-on-year to SEK 563m while sales in the liquid packaging board (LPB) segment declined by 11 per cent to SEK2.10bn in the third quarter of 2025. Containerboard sales stood at SEK1.25bn and thus 16 per cent below the same period last year.
The situation on the market in Europe is expected to remain difficult and challenging going forward. "Looking ahead and into Q4, we expect continued solid market conditions for our operations in North America. In contrast, we expect the adverse market conditions in Europe to continue to impact our sales in Q4, particularly within board categories," said Ivar Vatne, President and CEO of Billerud.
