Norske Skog will take a major step in its continued transformation towards a growing and high-margin business by converting two newsprint paper machines into renewable containerboard production.
The conversions in Golbey and Bruck will introduce 765,000 tonnes of competitive containerboard capacity to meet the growing demand for renewable packaging.
Following the conversions, both mills will have access to green energy and have reduced their carbon footprints to become among the best performers in the industry.
Norske Skog will continue to be a reliable supplier of all publication paper grades after the planned conversions.
Newsprint capacity will be reduced with 360,000 tonnes, balancing the market for the Norske Skog’s remaining European publication paper capacity.
Norske Skog plans to invest approximately EUR 350 million in the conversion projects over an 18-month period commencing in H2 2021.
The investments are expected to generate an annual EBITDA of approximately EUR 70-80 million at full utilisation, based on historical prices for containerboard and recovered paper.
At the Golbey mill in France, approximately EUR 250 million is planned to be invested to convert PM1 from its current 235,000 tonnes of newsprint capacity to 555,000 tonnes of leading recycled containerboard capacity.
Following the conversion in 2023, Golbey will have 555,000 tonnes of recycled containerboard capacity and 330,000 tonnes of newsprint capacity.
At the Bruck mill in Austria, approximately EUR 90 million is planned to be invested to convert PM3 from its current 125,000 tonnes of newsprint capacity to 210,000 tonnes of recycled containerboard capacity.
Following the conversion in 2023, Bruck will have 210,000 tonnes of recycled containerboard capacity and 265,000 tonnes of light-weight coated magazine capacity.
Final investment decisions are planned in the first half of 2021, and start of containerboard production in the first half of 2023.
Production standstill at the machines that will be converted is limited to three months during the final stages of the conversions, and full utilisation is expected by the end of 2025. ■