Norske Skog to enter the European packaging markets
Norske Skog will take a major step in its continued transformation towards a growing and high-margin business by converting two newsprint paper machines into renewable containerboard production. The conversions at Golbey and Bruck will introduce 765,000 tonnes of competitive containerboard capacity to meet the growing demand for renewable packaging. Following the conversions, both mills will have access to green energy and have reduced their carbon footprints to become among the best performers in the industry. Norske Skog will continue to be a reliable supplier of all publication paper grades after the planned conversions. Newsprint capacity will be reduced with 360,000 tonnes, balancing the market for the Norske Skog’s remaining European publication paper capacity. Norske Skog plans to invest approximately EUR 350 million in the conversion projects over an 18-month period commencing in H2 2021. The investments are expected to generate an annual EBITDA of approximately EUR 70-80 million at full utilisation, based on historical prices for containerboard and recovered paper.