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Norske Skog Shuts Newsprint Machine in New Zealand

Aug. 2, 2006 - Norske Skog Tasman in New Zealand shut down its PM 1 yesterday as part of a restructuring of production in Australasia.

PM 1 had the capacity to produce 130,00 tpy of newsprint and directory paper. The machine had been in service for 50 years.

Staffing at the mill has been reduced by 127 people following the machine shut-down, Norske Skog said.

The plan to shut PM 1 was initially announced in mid-2004, when the company rolled out an extensive reorganization of operations at Norske Skog Tasman and the Norske Skog Albury mill in Australia.

The reorganization project will reduce costs in the region by roughly AUD 30 million on an annual basis, and improve gross operating margins by three-four percentage points, Norske Skog said.

SOURCE: Norske Skog




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