CHEMICALS WORLD

STOCKHOLM, Sweden, February 16, 2009 -- Billerud is further strengthening its know-how in renewable packaging through the acquisition of Tenova Bioplastics AB, a Swedish innovation company based in Norrköping that produces compostable carrier bags made of bioplastic. Tenova’s largest customer is ICA AB. The company has sales turnover of MSEK 35 and is a market leader in its field in Sweden.“This acquisition fits well into our long-term strategy. Billerud is a leader in sustainable packaging solutions made of renewable raw materials, and we are continually looking for new products and applications that will develop our business. Bioplastic will be a good complement to paper for renewable packaging, and in the long term the combination of paper with barriers made of bioplastic will be a highly attractive alternative for many different types of packaging. Tenova is a leader in the rapidly expanding bioplastic field, which provides Billerud with a platform for the future. The acquisition strengthens our product offer in the consumer sector, which is less sensitive to the economic cycle,” says Per Lindberg, CEO of Billerud.At present, bioplastic is primarily made of polylactic acid or starch mixed with compostable polyesters. The material is biologically degradable and compostable