07 Dec 2011

Norske Skog's BoD recommends closure of Follum

The Board of Directors of Norske Skog recommends closing production at Norske Skog Follum. Tomorrow, Thursday, the matter will be presented to the Corporate Assembly of Norske Skog.

If the Corporate Assembly upholds the recommendation of the BoD, the production at Follum will according to plan cease no later than 31 March 2012.

The decision of the BoD was reached against the vote from the Follum employee representative.

 - Norske Skog sells less paper than before since many replace paper with electronic media. We unfortunately no longer need as many paper mills, and therefore the least competitive mill has to be closed first, says Chair of the board Eivind Reiten at Norske Skog.

- The majority of the board has concluded that no justifiable alternative to a closure exists.  This is regrettable towards the employees at Follum. We have been negotiating with Viken Skog regarding a potential sale. It has however not been possible to reach an agreement which is viable both in a market and an economic sense, says Chair of the board Eivind Reiten at Norske Skog.   

Norske Skog Follum is located in the town of Hønefoss, Norway and has 356 employees. The mill produces improved newsprint, magazine paper and book paper. Annual production capacity is 290 000 tonnes.

Oxenøen, 7 December 2011

Norske Skog
Communications and Public Affairs

For further information:
Vice President Corporate Communication
Carsten Dybevig
Mob: (+47) 917 63 117
Financial markets:
Vice President Investor Relations
Tom Rogn
Mob: (+47) 948 55 659
This information is subject of the disclosure requirements pursuant to section 5-12 of the Norwegian Securities Trading Act.