Norske Skog shuts newsprint PM at Tasman mill, converts another at Boyer plant

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Norske Skog announced that it will convert a newsprint paper machine at the Boyer mill in Australia to the production of coated grades, and close one newsprint machine at the Tasman mill in New Zealand.

The company said that the machine conversion project will see AUD84m invested at Norske Skog's Boyer Mill in Tasmania over the next two years to enable the production of coated grades among other things suitable for catalogues. The Australian Federal Government will contribute AUD28m in grants to help fund the project, and the Tasmanian State Government is providing an AUD13m loan. Completion is targeted for the first quarter of 2014.

“We are committed to the future in Australia, and we therefore invest AUD84m. With substantial funding support from the Australian government, we strengthen the operations at Boyer. This will create future growth opportunities for the Norske Skog group”, said Norske Skog President and CEO Sven Ombudstvedt in a press release.

The permanent closure of 150,000 t of capacity at the Tasman mill in New Zealand is to create a better balance between demand and supply for newsprint in the region. There is today considerable surplus capacity of newsprint in the region, Mr Ombudstvedt said. The implementation arrangements and timeframes will be subject to consultation with employees and other stakeholders, he explained.

The final costs of the restructuring will be determined once the consultation process at the Tasman mill is completed


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