Norske Skog establishing itself as a leading European supplier of recycled containerboard
23 June 2021
“Today, we are very proud to announce that the second of our two announced containerboard projects has been approved by the board and received financing commitments from quality banks in the Nordics and Europe", says Sven Ombudstvedt, CEO of Norske Skog ASA.
"Golbey and Bruck will together supply 760 000 tonnes of lightweight containerboard, produced from green energy and 100% recycled materials. The packaging business will become an important and strong part of Norske Skog’s business going forward", Ombudstvedt continues.
Norske Skog will invest approximately EUR 250 million in the conversion of Golbey PM1, and a syndication of financing facilities of approximately EUR 175 million is being finalised, subject to final documentation and final approval from the relevant export credit agency. The remaining investment amount will be covered by cash on balance and cash flows from operations. The converted machines are expected to generate an annual EBITDA of approximately NOK 700-800 million in 2025/26, based on historical trend prices for containerboard and recycled fibre.
“This investment decision marks an important step in Norske Skog's development as we look to enhance long-term value for all our stakeholders. Increased focus on environmentally friendly products and the continued rise of online shopping have created a significant need for renewable packaging solutions. Recycled containerboard production at Golbey will meet this demand with cost-leading and environmentally friendly capacity. Located centrally in continental Europe, the Golbey industrial site is well positioned for the large containerboard market, and it has good and established access to recycled fibre", says Norske Skog’s CEO Sven Ombudstvedt.