Norske Skog will take a step in its transformation towards
a growing and high-margin business by converting two newsprint paper machines
into renewable containerboard production, the company announced June 17.
The
conversions at Golbey (France) and Bruck (Austria
Norway-based
Norske Skog will continue to be a supplier of all publication paper grades
after the planned conversions. Newsprint capacity will be reduced, balancing
the market for Norske Skog’s remaining European publication paper capacity.
Norske Skog
plans to invest approximately 350 million euros (nearly $392 million) in the
conversion project over an 18-month period starting in the second half of 2021.
“This is a
milestone in Norske Skog’s strategy to become a leading European packaging
producer through conversion of publication paper capacity. We will continue to
optimize our broad asset base to diversify within high-growth fiber segments,
and maximize cash flows from the publication paper business,” says Norske Skog
Chairman John Chiang, who also represents the largest shareholder, Oceanwood.
Final
investment decisions are planned in the first half of 2021 and the start of
containerboard production in the first half of 2023.
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