Norske Skog to Sell Newsprint Mill in Thailand
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Norske Skog, Lysaker, Norway, has agreed to sell its Singburi newsprint mill in Thailand to a Thai industrial group for $33 million. The transaction is part of an already communicated strategy to improve Norske Skog's financial position. The new owner plans to continue producing newsprint at the mill.
"The divestment is part of Norske Skog’s strategy to improve its cash flow and financial position. We are very pleased to be able to sell the operations in Thailand to a buyer with long-term plans for the mill," said Sven Ombudstvedt, president and CEO.
The Singburi mill has a total newsprint production capacity of approximately 125 000 metric tpy, and is the sole producer of newsprint in Thailand. The mill has 239 employees.
The transaction will have limited operational impact on the rest of Norske Skog, the company notes. The financial and operational closing of the transaction is expected to take place in the fourth quarter of 2013. The transaction will give a small financial gain, and the final accounting effects will be disclosed in the 2013 fourth quarter financial statements.
