Norske Skog to idle SC paper machine at Saugbrugs

Norske Skog's Saugbrugs mill will close
one of three SC paper machines
22 Oct 2020 − 

Norske Skog is proceeding with its efforts to ease supply pressure on the publication paper market. The company announced the closure of one SC paper machine with a capacity of 100,000 tpy.

Norske Skog intends to cut its SC paper capacities in the light of overcapacities on the market. The company announced it would permanently close the PM 5 at its Saugbrugs mill in Halden, Norway. The machine has a capacity of 100,000 tpy and is expected to be shut down during the fourth quarter.

The Saugbrugs mill operates three paper machines which are able to produce a total of up to 550,000 tpy of SC paper. Since the start of the Covid-19 pandemic, Norkse Skog had repeatedly halted production at several publication paper machines in order to match its supply with shrinking demand. The machines at Saugbrugs were affected as well by these measures. Now the company wants to shut down PM 5 and produce SC paper only at the remaining two machines of the site in the future.

Norske Skog reported that demand for publication paper had improved somewhat recently. However, the near-term market balance in Europe was expected to remain weak due to a structural demand shift in light of COVID-19, the company said.

Newsprint production at Tasman mill to be idled in Q1 2021

This is why Norske Skog also decided to look for alternatives for its Tasman newsprint mill in New Zealand. The company plans to shut down the newsprint machine at the site in the first quarter of next year, pointing to overcapacities in the Australasia region as well.

This article is an excerpt from our article on Norske Skog's plans for the future.

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