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Norske Skog to Curtail Newsprint Production

Lysaker, Norway 20 March 2013 -- In order to avoid unnecessary build up of inventory, Norske Skog will temporarily idle one paper machine (PM2) at Norske Skog Skogn from June. PM2 has an annual production capacity of 130 000 tonnes. Skogn has an annual capacity of 550 000 tonnes.

- The temporary closure of capacity at the Skogn mill in Norway is required, both to create a better balance between demand and supply for newsprint in Europe, and to avoid unprofitable production at Skogn. Despite years of great efforts by the staff to reduce costs, the decision is unfortunately unavoidable due to factors including the strong Norwegian krone, said Mr Sven Ombudstvedt, President and CEO of Norske Skog.

The one machine still in operation at Norske Skog Tasman (New Zealand) will reduce production by removing 15 000 tonnes from the market, as a direct consequence of the energy price development in New Zealand.

Customers will be served from other Norske Skog mills and paper machines. All existing supply commitments will be honoured.


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