01 Apr 2003

Termination of the Norske Skog Klabin Joint Venture

In accordance with the original agreement, the Norske Skog Klabin Joint Venture is now terminated. The company was created in February 2000, and comprised PM 6 at Klabin's Monte Alegre mill in Brazil. The paper machine, with an annual capacity to produce 130,000 tonnes of newsprint, has now been delivered back to Klabin and will hereafter produce packaging grades.
- The Norske Skog Klabin J/V marked Norske Skog's entrance in South America, which is an important growth region, says Norske Skog's President and CEO, Mr Jan Reinås. - Through Norske Skog Klabin and the Pisa mill that was acquired later, Norske Skog has become the only domestic supplier in Brazil and also by far the largest South American-based supplier.
Norske Skog has developed good long-term relations with customers in Brazil. After the termination of Norske Skog Klabin, customer relations and market shares will be maintained by shipping newsprint from the mills in Europe.
The decision to take out 130,000 tonnes without adding new capacity is in accordance with Norske Skog's global capacity management philosophy. Longer term, Norske Skog will realise its plans to build a second paper machine at the Pisa site, thereby capitalizing on Pisa's existing infrastructure and the low-cost wood from nearby plantations.

Oxenøen, April 1, 2003


Corporate Communication

Contact person: Rune Gjessing, Director Investor Relations, phone + 47 67 59 90 73 or + 47 901 52 614