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Norske Skog to transform and become diversified player with projects in several categories for growth

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Norske Skog to transform and become diversified player with projects in several categories for growth

August 03, 2021 - 08:39
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OSLO, Norway, Aug. 3, 2021 (Press Release) -“From being a focused publication paper company we are now transforming Norske Skog towards becoming a more diversified company with projects in several categories for growth,” says Tore Hansesætre Senior Vice President Strategic Projects in Norske Skog.

Norske Skog has a strong portfolio of projects aimed at growing markets. In Continental Europe the company is pushing towards making Norske Skog a leading independent producer of recycled containerboard, targeting a rapidly growing packaging market.

“The conversions of Bruck PM3 and Golbey PM1 to producing of recycled containerboard, as well as the two new energy facilities at Bruck and Golbey, are four individually large, sustainable and attractive growth projects. Together, they reinforce each other and will contribute to Norske Skog quickly picking up the pace on revenue and earnings growth,” says Hansesætre.

The total investment of EUR 350 million for the two conversions to production of recycled containerboard is a considerable amount, but at the same time materially lower than what is needed to build comparable containerboard capacity of 760 000 tons.

« I am very enthusiastic about our conversion projects ongoing in Bruck and Golbey. They represent a unique and attractive opportunity for Norske Skog to establish us as a highly competitive supplier in a large and growing packaging market,” he says.

A combination of green and cost-efficient energy supply, close proximity to customers in Continental Europe, as well as scale and existing infrastructure at the Norske Skog mills are drivers for the ability to compete in a new market.

«New capacity is needed to meet the increasing demand of sustainable packaging material, among other coming from the growth in online shopping,” says Hansesætre.

But the projects in Continental Europe are not the only exciting projects going on in the company these days.

“In Norway we apply our knowledge about fiber and energy to make new, innovative products such as bio-composites and nano-cellulose, and in New Zealand we have expanded our wood pellets production, all products that will replace fossil materials. We are also looking into partnerships on carbon capture and storage. This is just to mention a few of the things we are doing,” says Hansesætre.

Some of these other interesting projects in the company’s pipeline are less capital intensive. What they all have in common is that they are targeted towards growing markets.

“These growth projects stem from the unique competence of Norske Skog’s talented people, combined with the possibilities of our asset base and our position in the value chain. Finally, we must not forget that we are also implementing innovative projects within our existing paper production as well, particularly within energy efficiency,” says Hansesætre.