03 Oct 2005

Board recommends mill closure

The board of directors of Norske Skog today accepted the recommendation from the management to close the Norske Skog Union mill in Skien south of Oslo.

This approval was given by 6 votes to 3. A proposal from employee elected members of the board to postpone the decision was voted down. A final decision on the closure is to be taken tomorrow by the corporate assembly of Norske Skog.
If the latter votes to accept the board's recommendation, operations at Norske Skog Union will cease in the first quarter of 2006.
Agreement on a severance package has been reached between the company and the workforce, with the main emphasis on helping those affected to find new jobs in Norske Skog or elsewhere.
The agreement also embraces severance for all employees and redundancy payments as well as special measures for older workers.
Oxen°en, 3 October 2005
Norske Skog
Corporate communications