Peterson Group Plans a Strategy to Restore Profitability

Norway based Peterson Group are making 2012 the year it restores profitability and secures its position in the marketplace, after 4 years of financial losses. The main focus will be the paper division, which accounts for 40% of the its turnover and has been making a loss since 2008/2009. The packaging division is already in a strong position.

The strategy that has recently been unveiled includes…

•          Trimming operating costs, by restructuring – possible job cuts if absolutely necessary
•          Rebranding its liners portfolioo
    
  Improved kraft liners (increasing virgin fibre share by 10%)o
    
  Increasing sales of 80g lightweight Kraft Liner, used in consumer bags production
•          Aggressive marketing
•          A new deal with Viken Skog, to purchase up to 30% of their raw materials reduce costs and increase stability
•          Refinancing of its NOK 300m debt
•          A new website

Group CEO Dan Johannessen has reportedly said "In 2012, we will work hard to satisfy our customers. We want them to see us as a supplier of products of an outstanding quality."

There have been rumours circulating they the company is looking for a new co-owner. It seems that discussions have taken place, but nothing has been finalised and it’s unlikely that anything will happen in the short term, however, once the new strategy has taken effect, it seems likely that there will be a move in this direction, and Peterson Group will be a much better proposition for any of the major containerboard producers

Posted Date: 09th Jan 2012