Norske Skog Provides Updates on Strategic Projects in France and Norway

The Golbey project will convert PM1 at Norske Skog Golbey from the production of newsprint to recycled containerboard. The machine will have the capacity to produce 550,000 tonnes per year.

Sept. 5, 2024 - Norske Skog today provided updates on two projects — Norske Skog Golbey in France and Norske Skog Saugbrugs in Norway.

According to the company, containerboard production at Norske Skog Golbey is expected to start during the first quarter of 2025. Norske Skog previously estimated production to begin in the second half of 2024.

The Golbey project involves the conversion of paper machine 1 (PM1) from the production of newsprint to recycled containerboard. The machine will have the capacity to produce 550,000 tonnes per year and is expected to reach 95% utilization within 2-3 years after startup.

Commissioning of the roll warehouse, containerboard winder, and the effluent station is ongoing.

In addition, pre-commissioning (I/O check) has started for the OCC drum pulper and will start in early October for PM1. However, work relating to piping and electrical cabling has taken longer than planned.

The net investment amount has increased to EUR 320 million from previous EUR 300 million as a result of the revised timeline and the additional work required, Norske Skog noted.

Containerboard production at Golbey will become part of the Packaging Paper accounting segment from the first quarter of 2025.

At Norske Skog Saugbrugs, the company has started a study that will form the basis of building a bleached chemi-thermomechanical pulp (BCTMP) production line at the mill in Halden, Norway. Currently, the study is being conducted with support from engineering consultants and vendor dialogues. The final investment decision is still expected during the first half of 2025.

Geir Drangsland, CEO of Norske Skog, commented, "Completion of the containerboard project at Golbey remains a top priority across the Norske Skog group and for me personally. We will do our utmost to complete the project within the updated time frame and budget, and look forward to start customer deliveries. This project has provided us with important lessons that will be implemented in the BCTMP project at Saugbrugs."

Norske Skog is a leading producer of publication paper with strong market positions and customer relations in Europe and Australasia. The Norske Skog Group operates four mills in Europe, two of which will produce recycled packaging paper following ongoing conversion projects. In addition, the Group operates one paper mill in Australia.

SOURCE: Norske Skog