Norske Skog - Capacity adjustments

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Norske Skog’s EBITDA in the third quarter of 2020 was NOK 73 million, a slight increase from NOK 52 million in the second quarter of 2020 when excluding the gain of NOK 86 million from the sale of the Tasmanian forest.

Although, there are modest signs of demand improvement, the markets have not returned to pre-COVID-19 levels. Norske Skog Saugbrugs (Norway) will permanently cease production at one of their SC-machines (PM5/100 000 tonnes) during  the fourth quarter.

- The corona restrictions have had a severe negative impact on operations due to a sudden and considerable drop in demand for publication paper. To ensure future profitability and competitiveness, we will adjust our production capacity to the prevailing market conditions; thus, we will close one SC-machine at Saugbrugs. In close dialogue with the employees, we will start a process to adapt the Saugbrugs organisation to a two-machine site. We will also identify new industrial opportunities at our mills in a response to the falling publication paper demand, says Sven Ombudstvedt, CEO of Norske Skog.

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Source: Norske Skog