Norske Skog to Build New TMP Plant at Saugbrugs Mill

Norske Skog, Norway, will invest 220 million Norwegian kroner in an expansion and renewal of the thermomechanical pulp (TMP) plant at its Saugbrugs paper mill in Halden, southern Norway. The old pulp plant at the mill will be replaced by a modern facility, which will supply pulp to the paper machines at a much lower cost than today, according to Norske Skog. Startup is scheduled for the spring of 2014.

The cost savings will consist mainly of lower energy and fiber consumption and lower maintenance costs. Increased use of wood pulp in the paper will also result in improved quality, the company notes. Norske Skog is being granted state support of 50 million Norwegian kroner for the investment project, due to its considerable energy savings.

"This investment in a new pulp plant will give increased competitiveness. We do this to be able to maintain operations at the Saugbrugs mill," said Sven Ombudstvedt, CEO of Norske Skog.

Norske Skog Saugbrugs has 550 employees. The mill has an annual production capacity of 545,000 metric tons of magazine paper.

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