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Norske Skog to curtail newsprint production


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Copyright © Thomson Reuters 2013. All rights reserved.
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. This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Norske Skog via Thomson Reuters ONE [HUG#1686556]


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