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Norske Skog Eyes Further Capacity Cuts in 2009

Jan. 6, 2009 - Norwegian papermaker Norske Skog today said that it foresees further decline in demand for newsprint and magazine papers in Europe, and that further production curtailments will be necessary in 2009.

"Through the autumn, we saw signs of reduced demand in 2009, and we will have to make some more temporary adjustments," Norske Skog's spokesman Tom Bratlie was quoted as saying in a Reuters news story.

"But we are not certain about the volumes to be taken out and when and where," Bratlie added.

Norske Skog, along with most paper producers, has been working to avoid overcapacity by matching supply to demand.

"This is what we have been doing for a while, adjusting capacity to demand and making sure that prices reach a more stable level than we have seen," Bratlie said.

According to Reuters, there has been a 9.5 percent year-on-year fall in European newsprint demand in November and a 16 percent drop in magazine paper demand.

SOURCE: Reuters




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