Settlement agreed on insurance coverage estimated up to NOK 2.4 billion for Norske Skog Saugbrugs

Norske Skog has worked closely with the insurance company, equipment suppliers, and other parties to determine the extent of damages following the rockslide on 27 April. The rockslide caused significant damage to buildings, cranes, machinery, and equipment associated with paper machine 6 (PM6). A settlement has now been reached between Norske Skog Saugbrugs and the insurance company regarding insurance coverage for both business interruption and property damage, estimated up to NOK 2.4 billion, which will jointly be covered by the insurance company, the Norwegian Natural Perils Pool, and reinsurers.

“The rockslide on 27 April this year was a traumatic experience for Saugbrugs employees, Halden residents, and Norske Skog. Fortunately, no one was physically injured in the rockslide, but PM6 and its associated building structures sustained substantial damage. After significant efforts from mill employees and other stakeholders, we are pleased to have reached an agreement with our insurance company for both business interruption and property damage, estimated up to NOK 2.4 billion. We have had an excellent dialogue and been treated very fairly by our insurance company throughout the process,” says Geir Drangsland, CEO of Norske Skog.

The property damage insurance at Norske Skog Saugbrugs will cover the costs to secure rock formations and rebuild building structures, with estimated settlement up to NOK 550 million. Furthermore, a settlement of NOK 1 billion has been agreed upon for investments in production equipment, of which NOK 59 million was paid out in the third quarter of 2023, NOK 326 million will be paid during the fourth quarter of 2023, and NOK 615 million as investment costs accrue.
more at: https://www.norskeskog.com/investors/press-releases/english-press-releases/settlement-agreed-on-insurance-coverage-estimated-up-to-nok-2-4-billion-for-norske-skog-saugbrugs?PID=4684&M=NewsV2&Action=1

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