Norske Skog Divests Operations in Chile
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Norske Skog, Lysaker, Norway, has agreed to sell its Bio Bio newsprint mill in Chile to Group BO, a consortium of Chilean investors, for $56 million. Group BO plans to continue producing newsprint at the mill.
The divestment is a part of Norke Skog's strategy to improve its cash flow and financial position. "We are very pleased to be able to sell the Chilean operations to an industrial player with long-term plans for the mill," noted Sven Ombudstvedt, president and CEO of Norske Skog.
The Bio Bio mill has a total newsprint production capacity of approximately 125 000 metric tpy. It is one of only four newsprint mills in South America.
The investors participating in Group BO are already partners in BO Packaging, one of the leading companies in the Chilean and Peruvian packaging business. The investor consortium is headed by the Pathfinder Group, former owners of Masisa, and has interests in packaging, glass products, building products, agribusiness, and real estate.
Closing of the transaction is expected to take place in the second quarter of this year.
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