SWEDEN -- BillerudKorsnäs AB, which currently owns 40% of the shares in ScandFibre Logistics AB (SFL), announced that it has reached an agreement with current owners (Mondi Dynäs AB, Smurfit Kappa Piteå AB och Holmen AB) to purchase all outstanding shares in SFL.

ScandFibre Logistics AB is a transport and logistics company, specializing in rail transports for the Swedish pulp and paper industry. SFL operates an international railway system called Rail11.

BillerudKorsnäs will therefore be 100% owner of the company. BillerudKorsnäs is already today the biggest utilizer of Rail11, the company recently announced increased production capacity and transport needs from their Swedish mills and they have a strategy to use railway transports as part of their sustainability strategy. In order to secure continuous operation and long term development of ScandFibre, BillerudKorsnäs has consequently agreed with the other owners to purchase all the shares in SFL.

In connection to the ownership changes, agreements for rail transports covering the period 2017-2019 have been prepared. Within the near future it is the intention to sign agreements with several international railway operators.

A new and further improved railway system Rail17 will start 2017. All of the current owners have been offered to continue using the services of ScandFibre Logistics in Rail17.

The ownership change is subject of approval from relevant competition authorities. BillerudKorsnäs' acquisition will be completed when such approval is granted. Completion of the acquisition is expected to occur mid-April, 2016.