“We now see the positive effects of the conversion of one machine line from newsprint to LWC at Boyer. We are the sole producer of publication paper in Australia and New Zealand, which gives us a competitive edge in those markets. Given the weak magazine paper markets in Europe, Walsum will be under strategic review,” says Sven Ombudstvedt, President and CEO of Norske Skog.
The net profit of NOK 663 million ($83.6 million) in the 1Q 2015 was significantly impacted by gains on the bond exchange, mainly related to the recent refinancing of the group.
“Already completed and announced capacity cuts in the industry should lead to an improved market balance for newsprint and magazine paper in Europe effective in second half of 2015. However, our effective cost reduction programs at every mill and a weaker Norwegian krone support operating margins, particularly for the Norwegian units,” says Sven Ombudstvedt, President and CEO of Norske Skog.
Norske Skog is a Norwegian pulp and paper company based in Oslo, Norway and established in 1962. The corporation is the world's largest producer of newsprint and magazine paper.
