Norske Skog Declares Euro 350 Million Investment in France, Austria Mills

SEATTLE (Scrap Monster): Halden, Norway-headquartered pulp and paper company Norske Skog announced investment of Euro 350 million in Golbe, France and Bruck, Austria mills. The investment will convert the newsprint machines at these mills into containerboard production.

The company targets to achieve additional 765,000 tonnes of containerboard capacity. The conversion project will lead to reduction of 360,000 tonnes of newsprint capacity. The projects are expected to commence in H2 2021 and are expected to be completed within 18 months. The investment is expected to generate an annual EBITDA of up to Euro 80 million at full utilization.

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Norske Skog plans to invest approximately Euro 250 million at the Golbey mill, to convert PM1. Following this, the mill is expected to have 555,000 tonnes of recycled containerboard capacity and 330,000 tonnes of newsprint capacity. Also, it plans to invest around Euro 90 million at the Bruck mill. Upon conversion of PM3, the mill will have 210,000 tonnes of recycled containerboard capacity and 265,000 tonnes of light-weight coated magazine capacity, the company press release said.

The full utilization is expected by end-2025.