Norske Skog to Idle Newsprint Machine at Skogn Mill
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Norske Skog, Norway, this week said that it will temporarily idle one newsprint machine (PM 2) at its Norske Skog Skogn mill in Norway, beginning June 1. PM 2 has a production capacity of 130,000 metric tpy. Skogn has an annual capacity of 550,000 metric tons.
"The temporary closure of capacity at the Skogn mill is required, both to create a better balance between demand and supply for newsprint in Europe, and to avoid unprofitable production at Skogn. Despite years of great efforts by the staff to reduce costs, the decision is unfortunately unavoidable due to factors including the strong Norwegian krone," said Sven Ombudstvedt, president and CEO of Norske Skog.
The one machine still in operation at Norske Skog Tasman (New Zealand) will reduce production by removing 15,000 metric tons from the market, as a direct consequence of the energy price development in New Zealand, the company noted.
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