Norske Skog Divests Newsprint Mill in Thailand for USD 33 Million

The Singburi mill has an annual production capacity of approximately 125,000 tons of newsprint.

Oct. 10, 2013 - Norske Skog has agreed to sell its Singburi mill in Thailand to a Thai industrial group for a total consideration of USD 33 million.

The new owner plans to continue producing newsprint at the mill, Norske Skog said.

The sale is part of a previously announced strategy by Norske Skog that focuses on improving its financial position.

"The divestment is part of our strategy to improve Norske Skog's cash flow and financial position," said Sven Ombudstvedt, president and CEO of Norske Skog. "We are very pleased to be able to sell the operations in Thailand to a buyer with long-term plans for the mill."

The Singburi mill has an annual production capacity of approximately 125,000 tons of newsprint, and is the sole producer of newsprint in Thailand.

The mill has 239 employees.

The sale will have limited operational impact on the rest of Norske Skog, the company said.

The financial and operational closing of the transaction is expected to take place in fourth quarter of 2013.

The deal will give a small financial gain, and the final accounting effects will be disclosed in the 2013 fourth quarter financial statements, Norske Skog added.

SOURCE: Norske Skog