Norske Skog to Convert Bruck Mill Newsprint PM to Tissue

Norske Skog, Norway, plans to convert the 128,000 metric tpy newsprint machine (PM 3) at its Bruck mill in Austria to tissue production. According to a RISI (Brussels, Belgium) report, the conversion will be done as a joint venture project with Roto-cart, an Italy-based tissue converter. The converted operation is expected to come on-stream in early 2017.

The converted machine will have 70,000 metric tpy of parent reel production capacity, made from recycled and virgin fiber and marketed to both integrated and independent tissue converters.

The RISI article quoted Sven Ombudstvedt, Norkse Skog's president as saying during the presentation of the firm's Q2 results, that "this cooperation makes sense from a market and production point of view and from a capex point of view. Roto-cart brings converter experience while we bring an industrial site and opportunity for brownfield investment." 

The project will cost some EUR 80 million ($87 million), with debt financing covering 75% of that and equity financing the remainder, the RISI article noted.

The move into tissue is part of a broader strategy by Norske Skog to enter markets with greater growth potential, the article continues, adding that "in line with that, the firm also announced that it will move into the bioenergy segment, a step which will begin with the construction of a biogas facility at its Saugbrugs mill in Norway. The new business area will operate under the name Nature's Flame, according to Ombudstvedt."