27 Jul 2005

Closure of Norske Skog Union recommended

The management of Norway's Norske Skog is working on a plan to permanently shut the Norske Skog Union mill in Norway during the first quarter of 2006. The reason for this action is persistent excess capacity in the European paper industry.

"We're one of the world's leading manufacturers of publication papers, and must adapt our capacity to the volume which yields acceptable earnings," says chief executive Jan Oksum.
Norske Skog Union has 380 employees and an annual production capacity of 260 000 tonnes. The mill workforce is being briefed about the position at meetings today.
The Norske Skog group has traditionally maintained close and good collaboration between employees and the management. Mr Oksum is today at Norske Skog Union.
"I very much understand the sense of uncertainty being felt by our personnel at Norske Skog Union," he says, and notes that the unions will be involved in further work on the plan.
The board of Norske Skog will discuss the matter at its meeting on 2 August.
A final decision on this issue will be taken by the corporate assembly of Norske Skog.
Further information from:
Tom Bratlie
Communication Manager
Corporate Communication
Mobile: +47 90 52 19 04
Tel: +47 67 59 93 34
Financial market:
Jarle Langfjæran
Vice President
Investor Relations
Mobile: +47 90 97 84 34

**Press conference**
A press conference is to be held at Norske Skog Union at 17:00 today. CEO and Presiden Jan Oksum will attend the press conference. For further information, please contact Benedicte Gude on phone no. +47 67 59 92 84 or mobile +47 959 07 951.