2013-03-20 08:31:55 -
In order to avoid unnecessary build up of inventory, Norske Skog will
temporarily idle one paper machine (PM2) at Norske Skog Skogn from June. PM2 has
an annual production capacity of 130 000 tonnes. Skogn has an annual capacity of
550 000 tonnes.
- 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, said Mr Sven Ombudstvedt,
President and CEO of Norske Skog.
The one machine still in operation at Norske Skog Tasman (New Zealand) will
reduce production by removing 15 000 tonnes
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. All
existing supply commitments will be honoured.
Norske Skog, Communications and Public Affairs
For further information:
Norske Skog media: Norske Skog financial market:
Vice President Corporate Communication Vice President Investor Relations
Carsten Dybevig Tom Rogn
Mob: +47 917 63 117 Mob: +47 948 55 659
This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.
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Source: Norske Skog via Thomson Reuters ONE