"The approval of the 85,000 t capacity upgrade is also a building block for potential further expansion of Norske Skog's pellet operations in New Zealand," the company said.
Norway's newsprint and magazine paper manufacturer Norske Skog is scaling up its wood pellets production capacity in New Zealand. The company announced that it will invest some AUD7m at its subsidiary Nature's Flame to increase capacity to 85,000 tpy. The additional capacity is said to be available to the market as of the fourth quarter next year.
According to Norske Skog, the additional production capacity is aimed at producing industrial grade pellet fuels for both the domestic market s well as for the growing green energy generation markets in Japan and South Korea.
Norske Skog had acquired Nature's Flame in 2015. Following the acquisition, production capacity was raised from 20,000 tpy to 40,000 tpy. Norske Skog originally planned to increase wood pellets production capacity to a total of 80,000 t by the end of 2016.
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