Norske Skog to convert newsprint machine for tissue production

Photo: Norcell
Photo: Norcell

Norske Skog's President and CEO recently announced plans to convert a newsprint machine (PM 3) at the company's Bruck paper mill in Austria to tissue production.

The total investment for the machine conversion project is around EUR 80 million, with project financing of 75% debt and 25% equity.

"We are entering the tissue market through a joint venture structure with an experienced partner, which limits the market risk and the capital spend for Norske Skog." – Sven Ombudstvedt, President and CEO, Norske Skog.

The Bruck mill is located in in Styria, Austria, and currently produces newsprint (128,000 tpy) on PM 3 and lightweight coated (275,000 tpy) grades on PM 4.

Norske Skog also announced plans to build biogas facilities at its mills, with the first biogas facility planned for the company's Saugbrugs paper mill in Norway. This project calls for an investment of about NOK 150 million.