Norske Skog Sells Mill in the Czech Republic
July 7, 2008 - Norske Skog said that it has sold its former "Steti" newsprint mill in the Czech Republic to Mondi.
The purchase price was not disclosed, however, Norske Skog said the price reflects the book value of the fixed assets in the company.
Newsprint production at mill ceased at the end of May this year, while all mill operations and employment relationships stopped at the end of June, Norske Skog said.
According to the company, Mondi will not resume newsprint production at the Steti mill and has acquired the site as part of a rationalization of the existing mill site.
Mondi is currently engaged in production of kraft pulp, kraft paper, containerboard, industrial bags and extrusion coating products at the same industrial site where Norske Skog Steti operated, and will buy most of the production equipment at the former newsprint mill, Norske Skog said.
The deal includes an option for Norske Skog to move a smaller part of the production equipment to other mills in the group.
The transaction will be carried out by Norske Skogindustrier ASA selling all their shares in Norske Skog Steti a.s. to Mondi Steti a.s.
The deal expected to close in 5-7 months and is subject to approval from Czech and EU competition authorities.
SOURCE: Norske Skog