28 Sep 2007

Distribution of reduction of newsprint production in Europe

Norske Skog has defined how they will implement the planned European reduction of 200 000 tonnes of newsprint in 2008. The curtailment will not result in temporary lay-offs.
The basis for the decision has been prepared in close cooperation between the mills' management, employee representatives and the corporate management. "This has been a very demanding process. I would like to praise the management and the employee representatives at the affected mills for the constructive and positive participation. Together, we have managed to get a plan for 2008 in place which will be very important in our efforts to increase Norske Skog's profitability," says chief executive Christian Rynning-Tønnesen.
According to the plan, production at Norske Skog Skogn will be reduced by 89 000 tonnes newsprint in 2008. Norske Skog Follum will reduce its production by 64 000 tonnes newsprint. In addition to the curtailments at the two Norwegian units, Norske Skog Parenco in Holland and Norske Skog Golbey in France will reduce their production of newsprint by 24 000 tonnes each.
The curtailment will result in improved profitability for Norske Skog. Adjustments of the operations at the mills will result in reductions in the use of overtime and summer temps. In this manner, costs will be reduced and no temporary lay-offs will be necessary at any of the mills.

Oxenøen, 28 September 2007
Norske Skog
Corporate communications
For further information:
Vice president corporate communications
Tom Bratlie
Tlf: +47 67 59 93 34
Mob: +47 905 21 904 
Financial market:
Vice president investor relations
Jarle Langfjæran
Tlf: +47 67 59 93 38
Mob: +47 909 78 434