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Norske Skog to Receive Electricity From NTE
Lysaker, Norway, 12 January 2012 -- Norske Skog has signed a long-term energy contract with NTE (Nord-Trøndelag Elektrisitetsverk) for the supply of electricity for the paper mill at Skogn.
The new agreement, together with an agreement that was signed with Statkraft last year, secures Norske Skog Skogn sufficient energy for full operation of the mill. The agreement has been entered into on commercial terms and has a duration of seven years from 01 January 2012. The new agreement with NTE ensures supply of 0.4 TWh per year until 31 December 2018.
"We are very pleased with this agreement. Norske Skog Skogn is important both for the group and for the forest industry in central Norway. This is an important contribution to securing jobs in Skogn," said Sven Ombudstvedt, president and CEO of Norske Skog.
Skogn is one of the most environmentally sound and effective paper mills in Europe. A strong Norwegian krone and the challenging market conditions in the industry, means that the mill must have access to stable and secure energy supplies at an acceptable price to maintain operations, Ombudstvedt noted.
"NTE is pleased to have in place an agreement with a key energy-intensive industrial firm in our region. Norske Skog at Skogn is an industry cornerstone in North-Trøndelag, with significant wealth creation and employment. The energy agreement also correlates well with our strategy for hedging energy production," said Torbjørn R. Skjerve, NTE's CEO.
Norske Skog Skogn employs 450 people. Production at the mill started in 1966. The mill produces newsprint, and the United Kingdom is its largest single market.
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