Oct. 10, 2023 - Norske Skog today completed a transaction for the sale of the Tasman mill industrial site and remaining mill assets to the Australasian pulp, paper, and packaging group Oji Fibre Solutions for approximately NOK 70 million (NZD 10.9 million).
Norske Skog said the sale of the mill site and realization of certain other related assets, including buildings, electricity equipment, piping, water, and other infrastructure, will generate a total financial gain on sale of approximately NOK 57 million (NZD 8.8 million).
"We are pleased to finally have concluded this sales agreement with Oji after lengthy process of negotiations and obtaining all required regulatory approvals for the sale," said Geir Drangsland, President and CEO of Norske Skog. "The sale of the Tasman industrial site to Oji is a material steps towards concluding Norske Skog's long-term business commitment in New Zealand."
Following this transaction with Oji, Norske Skog only retains some rural land areas and some other land areas previously used for industrial landfilling and water treatment facilities where there are ongoing processes to complete the required closure steps before a sale process will be executed also for these areas.
Since the initiation of the strategic review in New Zealand in October 2020, a process made necessary by the secular decline of the publication paper industry and the impact of COVID-19, Norske Skog has explored a range of alternatives for the Tasman mill. Following a careful review, Norske Skog decided to close the Tasman mill and sell the mill's assets.
Production at the Tasman mill ceased in June 2021, reducing Norske Skog's newsprint capacity by approximately 150,000 tonnes per year.
Norske Skog noted that the Tasman mill produced very limited volumes of newsprint during 2021.
Norske Skog is a leading producer of publication paper with strong market positions and customer relations in Europe and Australasia. The Norske Skog Group operates four mills in Europe, which produce publication paper, recycled packaging paper, energy and bioproducts.
SOURCE: Norske Skog
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