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Norske Skog Provides Operational Updates

In Norway, Norske Skog's Saugbrugs mill has ceased production on two paper machines (PM4 and PM5) due to negative market developments as a result of the corona virus restrictions.

April 14, 2020 - Norske Skog today announced operational changes and said that it has and will closely monitor the development of the coronavirus, and corresponding effects on the company's supply chains and markets.

"Our top priority is to ensure the health and safety for our employees," said Sven Ombudstvedt, CEO of Norske Skog. "The challenge in the long run will be to secure both in- and outbound logistics of raw materials and finished goods under the current cross border transportation restrictions. However, we are confident that we will meet customer needs and expectations also in this situation. We will continue to communicate closely with suppliers, customers, other stakeholders and the financial market."

As earlier communicated, Norske Skog will adjust operational activity to market response, and will therefore implement the following necessary actions as a result of the corona virus situation:

• In France, the Golbey mill has now full production at both machines after a 14 day stop at one paper machine (PM2) due to a 14 day corona quarantine.
• In Norway, Saugbrugs has ceased production on two paper machines (PM4 and PM5) due to negative market developments as a result of the corona virus restrictions. As a result of this, 173 employees are temporarily laid off. In addition, 25 administrative personnel at headquarters has been temporarily laid off as a result of the corona situation.
• In New Zealand, the production at the Tasman mill has ceased production from 13 April due to national lock down restrictions. Nature's Flame pellets production has been deemed essential for domestic, industrial and public heating. Norske Skog is currently rearranging its supply chain in the entire Australasian region to reflect the situation.

About Norske Skog

Norske Skog is a leading producer of publication paper with a strong market position in Europe and Australasia. Publication paper includes newsprint and magazine paper. The Norske Skog group operates six mills and a pellets business in five countries, with an annual publication paper production capacity of 2.3 million tonnes and pellets capacity of 85,000 tonnes. For further information, visit: www.norskeskog.com

SOURCE: Norske Skog ASA