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Norske Skog Invests a Quarter of a Billion in Halden

Lysaker, Norway 20 June 2012 -- Norske Skog will invest NOK 220 million in an expansion and renewal of the thermo-mechanical pulp plant at Norske Skog Saugbrugs in Halden. The old pulp plant will be replaced by a modern facility, which will supply pulp to the paper machines at a much lower cost than today.


The cost savings consist mainly of lower energy and pulp consumption and lower maintenance costs. Increased use of wood pulp in the paper will also result in improved quality. Enova has pledged support of NOK 50 million, because of the considerable energy savings from the project. Start-up of the pulp plant will take place during spring 2014.


- Investments in the new pulp plant will give increased competitiveness. We do this in order to be able to maintain operations at Saugbrugs, says President and CEO in Norske Skog, Sven Ombudstvedt.


- A strong Norwegian krone, together with Norwegian-specific costs, for example property tax, depreciation rules and maximum truckload restrictions, are a direct threat to Norwegian industry and Norwegian jobs. Competitors in Sweden and Finland do not have these distinctively Norwegian-specific costs, and can produce more affordable paper. If Norway shall continue to be an industrial nation, we must have the same terms as our Swedish and Finnish competitors in the EU. We hope that the government will implement necessary changes to support Norwegian industry going forward, says President and CEO in Norske Skog, Sven Ombudstvedt.


- The investment will contribute to make Norske Skog Saugbrugs in Halden an energy-efficient mill that is poised for continued operation. Enova supports investments in activities that contribute to a greener industry and lower energy consumption, says director of the Energy Production division, Øyvind Leistad in Enova.


Enova, a public enterprise owned by the Ministry of Petroleum and Energy in Norway, will impel an environmentally-friendly restructuring of energy consumption and energy production in Norway through funding and advice. The goal is to create sustainable changes in supply and demand for efficient and renewable energy solutions. Enova works closely with market participants in the private and public sectors to reduce energy use and increase production from renewable energy sources.


Norske Skog Saugbrugs has 550 employees. The mill has an annual production capacity of 545 000 tonnes of magazine paper


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