26 Sep 2005

New mill opens in China

The Hebei newsprint mill in China was officially opened today. The mill is owned by PanAsia, which will be wholly owned by Norske Skog by year end.

The Hebei mill has Asia's largest newsprint machine, and will have an annual production capacity of 330 000 tonnes. This production is completely based on recycled paper.
Approximately 70% of the production will be sold in Hebei province including the nearby cities of Beijing and Tianiin. The total population of this area is about 100 million.
The mill cost about NOK 2 billion, and was built in two years. After the acquisition of PanAsia, Norske Skog will own 80% of the mill, with the rest owned by Chinese interests.
Asia is the world's fastest growing market for newsprint. In China, it is expected that the annual growth in newsprint demand will be almost 6% until 2014. With the acquisition of PanAsia, Norske Skog will be the leading producer of newsprint in the region.
Oxen°en, 26 September 2005
Norske Skog
Corporate Communication