Norske Skog to Temporarily Idle Newsprint Machine in Norway

March 22, 2013 - Norske Skog said that it will temporarily idle one paper machine (PM2) at its newsprint mill in Skogn, Norway, effective June 2013, in order to avoid unnecessary build-up of inventory.

Skogn operates three newsprint machines with a combined annual capacity of 55,000 tonnes. PM2 has an annual production capacity of 130,000 tonnes.

In a statement Norske Skog said, “The temporary closure of capacity at the Skogn mill in Norway is required, both to create a better balance between demand and supply for newsprint in Europe, and to avoid unprofitable production at Skogn.

“Despite years of great efforts by the staff to reduce costs, the decision is unfortunately unavoidable due to factors including the strong Norwegian krone.”

Tasman Mill to Reduce Production
Norske also said that the one machine still in operation at Norske Skog Tasman in Kawerau, New Zealand will reduce its production by removing 15,000 tonnes (newsprint / directory paper) from the market, as a direct consequence of the energy price development in New Zealand.

Customers will be served from other Norske Skog mills and paper machines, the company said.

SOURCE: Norske Skog