Norske Skog Completes Sale of Newsprint Assets in China
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 Norske Skog, Norway, reports this week that it has completed selling its Norske Skog Hebei newsprint mill in Zhaoxian China to Shandong Huatai Paper. The sale will reduce Norske Skog's net debt by around NOK 800 million while freeing up resources to strengthen the company's effort to improve profitability at its other mills. Norske Skog Hebei has a production capacity of 330 000 metric tpy of newsprint. There are about 250 employees at the mill. The company also announced this week that it completed the sale of its 56% stake in the newsprint mill Shanghai Norske Skog Potential Paper (SNP) to Potential Industries of China. SNP has a newsprint production capacity of 145,000 metric tpy, and was one of the smallest mills in Norske Skog's global portfolio. Since 2005, Norske Skog has owned SNP in partnership with Potential Industries (34%) and Shanghai Baoshan Shi Dong-kou Economic and Trading General Co (10%). Norske Skog has operated the two Chinese newsprint mills since 2005, when it bought out its partner and became the sole owner of the PanAsia Paper Co.
"In spite of hard work, for several years we have not managed to turn a profit in China. In June this year, we announced the sale of our mill in Shanghai. With the sale of Hebei, Norske Skog is no longer producing paper in China. The sale of Norske Skog Hebei is a continuation of our effort to reduce Norske Skog's net debt and improve profitability," says CEO Christian Rynning-Tønnesen.
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