Jan 03, 2011. /Lesprom Network/. Norske Skog has signed a long-term contract with Statkraft for supply of power for the paper mill at Skogn in Mid-Norway. The contract secures the continued operations at the mill, which needed a new long term power supply contract by the beginning of 2011, as the company said in a press release received by Lesprom Network. "We are very pleased with the agreement. Norske Skog Skogn is important to Norske Skog and for the forestry industry in Mid-Norway. This will help securing the workplaces at Skogn," says President and CEO of Norske Skog Sven Ombudstvedt. The new contract with Statkraft secures yearly supply of 0.8 TWh of electricity per year until December 31, 2022. The agreement takes effect on January 1, 2011. In addition to Norske Skog, the agreement is negotiated in cooperation with Finnfjord AS, which will secure power supply for its smelter at Finnsnes in Northern Norway. Norske Skog Skogn is one of the most environmentally friendly and efficient paper mills in Europe. A strong Norwegian currency and demanding market conditions throughout the industry means the mill needs access to stable and secure power supply at acceptable prices to maintain operations. Norske Skog Skogn employs 500 people. Production started in 1966. The mill produces newsprint, with UK as the biggest single market.