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Norske Skog Realigns Corporate Management

July 5, 2006 (Press Release) - A new organisational structure and corporate management team for Norske Skog were presented today by Christian Rynning-Tønnesen, who took over in June as the company's chief executive.

"We must implement a turnaround to restore profitability to an acceptable level," he says. "The new corporate management and organisation provide a solid basis for making the necessary changes."

The top team is being reduced from 10 to eight members, with regions eliminated as a separate management level. Four senior vice presidents will each be responsible for a portfolio of mills.

Staff functions will be concentrated under the senior vice president for HR & organisation and the chief financial officer. A new position as senior vice president is dedicated to programmes for improved profitability.

Further reorganisation will be pursued by the new corporate management team, with proposals for these changes due to be presented during August.

"It's too early to say anything specific about what the restructured organisation will look like, says Rynning-Tønnesen. "However, one of my aims is to strengthen the role and responsibility of the mills towards customers and suppliers. Each mill will be responsible for sales and general procurement."

Senior vice president Eric d'Olce presently mill manager Norske Skog Golbey in France will be responsible for the Skogn, Parenco, Golbey and Stetí mills. In addition, he will have responsibility for the co-ordination of sales and marketing activities.

Senior vice president Antonio Dias, presently executive vice president South America, will be responsible for the Saugbrugs, Follum, Bruck, Walsum, Pisa and Bio Bio mills.

Senior vice president Vidar Lerstad presently senior vice president strategy will be responsible for the Jeonju, Cheongwon, Hebei and Shanghai mills.

Senior vice president Ketil Lyng will be responsible for the Albury, Boyer, Tasman and Singburi mills. Ketil Lyng will also assume responsibility for environment. He will maintain his current responsibilities in supply and logistics at the corporate level.

Senior vice president Peter Chrisp, formerly Mill Manager Norske Skog Tasman in New Zealand, will be responsible for the profitability improvement programme, Norske Skog Production Systems (NSPS) and research and development.

In addition to his role as chief financial officer, Andreas Enger will also be responsible for strategy, energy, communication and IT.

The process to recruit a senior vice president HR & organisation has started. Axel Thuve will be acting in this position until further notice.

"The new corporate management team has a broad international background and extensive experience with Norske Skog. We will face many challenges and hard work in the months ahead, but I am confident that we will succeed in turning the organisation around to regain profitability", says chief executive officer Christian Rynning-Tønnesen.

Financial reporting, with P & L figures for each geographical region, will continue as before.

SOURCE: Norske Skog




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