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Operational update

14 April 2020

Norske Skog ASA closely monitors the coronavirus (COVID-19) outbreak and continuously implements adequate measures to reduce the risk for employees and ensure continuity of operations. Norske Skog adheres to the individual recommendations and measures taken by the national authorities.

Sven Ombudstvedt, CEO of Norske Skog, comments: “Our top priority is to ensure the health and safety for our employees. The challenge in the long run will be to secure both in- and outbound logistics of raw materials and finished goods under the current cross border transportation restrictions. However, we are confident that we will meet customer needs and expectations also in this situation. We will continue to communicate closely with suppliers, customers, other stakeholders and the financial market."

Norske Skog has and will closely monitor the development of the coronavirus, and corresponding effects on our supply chains and markets. As earlier communicated, Norske Skog will adjust operational activity to market response, and will therefore implement the following necessary actions as a result of the corona virus situation:

  • In France, the Golbey mill has now full production at both machines after a 14 day stop at one paper machine (PM2) due to a 14 day corona quarantine.
  • In Norway, Saugbrugs has ceased production on two paper machines (PM4 and PM5) due to negative market developments as a result of the corona virus restrictions. As a result of this, 173 employees are temporarily laid off. In addition, 25 administrative personnel at headquarters has been temporarily laid off as a result of the corona situation.
  • In New Zealand, the production at the Tasman mill has ceased production from 13 April due to national lock down restrictions.  Nature’s Flame pellets production has been deemed essential for domestic, industrial and public heating. We are currently rearranging our supply chain in the entire Australasian region to reflect the situation.

In general, the corona situation will not affect our strategy and the on-going tasks to improve the core business, convert certain of the group’s paper machines and diversify the business within bioenergy, fibre and biochemicals. Norske Skog will publish the Q1 2020 results on April 23, and the Covid-19 restrictions will have marginal impact on the first quarter results.

About Norske Skog

Norske Skog is a world leading producer of publication paper with a strong market position in Europe and Australasia. Publication paper includes newsprint and magazine paper. The Norske Skog group operates six mills and a pellets business in five countries, with an annual publication paper production capacity of 2.3 million tonnes and pellets capacity of 85,000 tonnes. Newsprint and magazine paper is sold through sales offices and agents to over 80 countries. The group has approximately 2,300 employees. In addition to the traditional publication paper and pellets business, new growth initiatives related to renewable energy, bio chemical products and fibre products have been launched.

Norske Skog
Communications and Public Affairs

For further information:

Norske Skog media:

Vice President Corporate Communication and Public Affairs

Carsten Dybevig
carsten.dybevig@norskeskog.com
Mob: +47 917 63 117
Twitter: @Norske_Skog

Norske Skog Investor Relations:

Investor Relations Manager

Even Lund
even.lund@norskeskog.com
Mob: +47 906 12 919

CONTACT INFORMATION

Norske Skog ASA
PB 294 Skøyen
0213 Oslo
Norway
info@norskeskog.com

Phone: +47 22 51 20 20
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VISITORS

Norske Skog ASA
Sjølyst plass 2
0278 Oslo