Rottneros is a pure-play pulp producer. It produces mechanical and chemical pulp for use in a wide range of applications. The majority of the group’s products are sold on the European market, which accounts for about 72% of the group’s revenues. Rottneros has also initiated the development of a new business area, Rottneros Packaging, where it produces moulded fibre trays for food packaging and special applications.
The largest share of Rottneros’ profits comes from the sale of pulp, which is a highly commoditised product. As a result, demand for the group’s products is cyclical and depends on the global economic cycle. It also means that the group’s earnings are highly sensitive to changes in the market price of pulp, as well the prices of its input factors: pulp wood, electricity and chemicals. Rottneros’ earnings are also sensitive to currency fluctuations, particularly in USD/SEK and EUR/SEK.