Norske Skog, Norway, has upgraded its southern Tasmanian mill to counter a decline in the industry, it says. The company’s mill at Boyer has supplied newsprint for Australia's newspapers for decades, and its Norwegian parent company was considering the mill's future as the newspaper industry declines.

 

Now Norske Skog has finished an $85 million upgrade that has converted one of its two machines to produce magazine-grade paper. As a result, the company says it is the only manufacturer of such paper in Australia and is aiming for the domestic market, which currently uses imported paper. It says the new product has already had successful print runs.

 

The upgrade was supported by a $28 million federal government grant and a $13 million state government loan. The mill's GM Rod Bender says attracting such investment for an industry in decline is difficult. "We're owned by an overseas company, Norske Skog. We're very proud to be a part of Norske Skog globally, but it is very hard to compete for the capital within the company," he said, adding that "what really did help and facilitated the decision that Norske Skog took was the support from both the state and federal governments."