Swedish packaging paper and carton producer BillerudKorsnas said on Monday it would launch a cost reduction programme aiming for around 600 million crowns (€56.2 million) of savings a year starting from 2021.
The company said it would eliminate up to 300 jobs, mainly in administration, pursue purchasing-related savings and efficiency improvements throughout the business.
In its latest earnings update, BillerudKorsnas said its first half workforce averaged at just over 4,600.
"This programme will ensure long-term efficiency and profitability," chief executive Petra Einarsson said in a statement.
BillerudKorsnas said it expected the programme to bring positive effects of around 250 million crowns (€23.4 million) next year.
It also raised its estimate for the negative full-year effect on earnings before interest depreciation and amortisation (EBITDA) from the start-up of the new KM7 board machine at its Gruvon mill to 650 million crowns (€60.9 million) from a previous forecast of 500 million (€46.9 million).
The adjustment is due to lower pace of KM7 start-up, it said. BillerudKorsnas said it expected the effect in the fourth quarter and the full year 2020 to be unchanged.
The company's shares fell 5.5% in early trade.