Paper company to take down newsprint machine at its Norway mill.
The Norweigan paper company Norske Skog has announced plans to idle one of its newsprint machines at its Skogn newsprint mill in Norway. Norske Skog says the move is designed to prevent an unnecessary build up of newsprint inventory.
The machine to be idled has an annual production capacity of 130,000 metric tons. Norske Skog’s Skogn mill has an overall annual capacity of 550,000 metric tons.
The downtime is slated to take place in June 2013.
Sven Ombudstvedt, president and CEO of Norske Skog, says the temporary cut in capacity at the Skogn mill is required to create a better balance between demand and supply for newsprint in Europe and avoid unprofitable production at the mill.
The company also says production at a machine still in operation at its Tasman mill in New Zealand will be reduced by removing 15,000 metric tons from the market because of a direct consequence of energy price developments in New Zealand.