Norske Skog closes two paper machines due to coronavirus

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Norske Skog Saugbrugs
The Norske Skog Saugbrugs mill where two paper machines have closed due to coronavirus

Newsprint manufacturer Norske Skog has closed two of its paper machines in Norway as a result of the coronavirus situation.

The company, which said in 2017 that 30% of its raw material comes from recovered fibre, issued a notice to investors that stated that Saugbrugs had ceased production on paper machines 4 and 5 due to negative market developments as a result of coronavirus restrictions.

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As a result, 173 employees have been temporarily laid off, plus an additional 25 employees at the company’s headquarters.

However, the company’s mill at Golbey in France is now back up to full production at both paper machines after a 14-day stop at paper machine 2 due to quarantine.

But in New Zealand, production at the Tasman mill has ceased production from 13 April due to national lockdown restricitons.

Norske Skog chief executive Sven Ombudstvedt said: “Our top priority is to ensure the health and safety of 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, and other stakeholders and the financial market.”

As reported by REB Market Intelligence, Packaging Corporation of America has closed a paper mill in Jackson, Alabama due to coronavirus for two months.

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