Sales record for the Heinzel Group
- Sales revenues in 2014 increase by 5.8 per cent to EUR 1,406.5 million
- Record EBITDA of EUR 117.9 million
- Successful market launch of the new Starkraft paper from Pöls
- Investment in a biogas plant at Estonian Cell
In 2014, the Heinzel Group once again demonstrated its inherent dynamism with an increase in sales revenues of 5.8 per cent to EUR 1,406.5 million. Apart from the initial, full-year inclusion of Laakirchen Papier AG and Bunzl & Biach GmbH, the successful start-up of the PM2 paper machine in Pöls and the expansion of the sales cooperation between the Swedish SCA Group and heinzelsales also contributed to these improved figures. By contrast, reduced production at Zellstoff Pöls AG owing to boiler damage had a dampening effect. Of the 3,247,039t of pulp and paper sold, 30.6 per cent derived from the group’s three production plants, while the remainder was marketed for third party suppliers.
At EUR 67.4 million, the operating result (EBIT) was slightly below the EUR 69.2 million of the preceding year. However, the latter was influenced by the exceptional positive effect of EUR 37.2 million derived from the acquisition of Laakirchen Papier AG, which by comparison in 2014 only amounted to EUR 10.6 million. Therefore, on an adjusted basis a marked improvement was achieved, which substantiates the positive development in Heinzel Group business.
Alfred H. Heinzel, the Heinzel Group CEO and president is clearly pleased: “We successfully implemented our acquisition and investment projects in full and all our companies returned positive operating results.”
Succesful market launch of Starkraft paper from Pöls
During the past year, the most important highlight for the Heinzel Group as a whole and the Pöls location in particular, was the market launch of the new Starkraft paper on the PM2 paper machine, which became operational at the end of 2013. As Kurt Maier, the Zellstoff Pöls AG CEO, explains with some satisfaction: “With the 58,429t of new kraft paper that we delivered to 43 markets, we have already surpassed the start-up curve in our business plan in the first year of business.” In 2014, this investment decision immediately brought the company the paper industry’s respected PPI Award in the Business Strategy of the Year category.
Following the explosion of the Zellstoff Pöls AG’s recovery boiler at the end of March 2014, pulp production was quickly resumed, albeit at a reduced level. The resultant major repairs will be completed by the end of 2015 and are being used as an opportunity for additional spending on energy efficiency.
Laakirchen Papier expands its product range
During its first full year of Heinzel Group membership, the Laakirchen Papier AG, which was acquired in 2013, quickly found its feet and acted in close cooperation with the other group companies. In 2014, the Upper Austrian paper mill responded immediately to the current trend in the market with two new products that have been developed especially for the direct marketing segment.
New biogas plant for the Estonian mill
In 2014, Estonian Cell achieved a European first by putting a biogas plant into operation that is linked to a BCTMP pulp mill. This involved spending of EUR 11 million and constituted the largest international investment in Estonia during 2014. Moreover, it has not only enhanced the energy efficiency of the mill, but has made a significant contribution to cost cutting, as the expenditure on natural gas for pulp drying has been markedly reduced. This scaling down of the mill’s CO2 emissions was acknowledged with the bestowal of Estonia’s 2014 Environmental Award for Business.
Heinzelsales hovers around the two million tonne mark
In 2014, the Heinzel Group’s globally active trading house sold roughly two million tonnes of pulp, paper, board and corrugated board. This represented a sizeable 17.6 per cent quantitative increase over the previous year and the total number of markets served around the world was enlarged to 86.
Europapier Group as well as the waste paper trader Bunzl & Biach, both belonging to Heinzel Group, have remarkably improved their results in a sustainable manner.
More detailed information regarding the 2014 financial year is available from the Heinzel Group Annual Report at www.heinzel.com/en/investor-relations/annual-report-2014
THE HEINZEL GROUP
The Heinzel Group, which is united under the Heinzel Holding umbrella, ranks with its industrial locations Zellstoff Pöls AG, Laakirchen Papier AG (both Austria) and AS Estonian Cell (Estonia) among the largest producers of market pulp and magazine paper in Central and Eastern Europe. The group’s Trading Business Area includes Wilfried Heinzel AG, a globally active pulp, paper and board trading company, and Europapier International AG, the leading paper merchant in Central and Eastern Europe. In addition, Bunzl & Biach GmbH is the largest and most important waste paper company in Austria and the leading wholesaler in Central and Eastern Europe. The Heinzel Group’s successful growth is based on the fulfilment of the highest customer demands with regard to quality and efficiency.