Norske Skog

Summary

Norske Skog ASA
TypeAllmennaksjeselskap
OSE: NSKOG
IndustryPulp and paper
Founded1962
HeadquartersOslo, Norway
Key people
Sven Ombudstvedt (President and CEO), Jen-Yue (John) Chiang (Chairman)
ProductsNewsprint and magazine paper and related fiber products
RevenueNOK 9.612 billion (2020)
NOK -1.339 billion (2020)
NOK -1.884 billion (2020)
Total assetsNOK 7.787 billion (2020)
Total equityNOK 3.219 billion (2020)
Number of employees
2332 (2020)
Websitewww.norskeskog.com

Norske Skog ASA, formerly Norske Skogindustrier ASA, which translates as Norwegian Forest Industries, is a Norwegian pulp and paper company established in 1962. The company has long been one of the world's leading manufacturers of newsprint and magazine paper. Due to a declining market for publication paper, the company has increasingly focused on other uses of timber and recycled paper, such as packaging.[1] The company is headquartered in Norway and has factories in five countries[2] and an annual production of approximately 2 million tonnes of paper (2020).

History

Norske Skog started in 1962 with the construction of a paper mill at Skogn in Norway, with the plant opening in 1966 and a second paper machine added in 1967. Half the capital for the project was issued by the Norwegian Forest Owners Association. In 1972 Norske Skog started a cooperation with Follum Fabrikker in Hønefoss. By 1989 Norske Skog had acquired Follum Fabrikker and Union in Skien as well as Saugbrugsforeningen in Halden. With this Norske Skog controlled all the pulp and paper mills in Norway.

The first international acquisition came in 1992 with Norske Skog Golbey in Lorraine, France. The company later bought the entire plant in 1995. Norske Skog expanded with purchases in Austria in 1996 and the Czech Republic in 1997. In 1998 it purchased mills in Thailand and the Republic of Korea.

In 2000 Norske Skog bought the British Columbia-based Fletcher Challenge Canada with nine mills and Pacifica Papers (formerly MacMillan Bloedel) and created NorskeCanada. At the same time it absorbed the Australian Newsprint Mills, a subsidiary of Fletcher Challenge. By 2006 Norske Skog had sold its shares in NorskeCanada and the company changed its name to Catalyst Paper.

In September 2005 it acquired the Asian company PanAsia Paper, in turn making Norske Skog Asia's largest producer of newsprint and magazine paper.

During the folloging years, the company suffered from an oversupply in the paper industry and mounting debt. A number of factories were closed, downsized or divested. The closure of the Union paper mill in Skien in 2005 caused a massive outcry, including protests from a number of politicians.[3] Further closures include the closure of a factory in Steti in the Czech Republic,[4] the indefinite closure of a factory in South Korea, and the closure of one of the three paper machines at Follum.[5] From March 2007 to March 2008, the stock value plummeted from over kr 100 to below kr 18.[6] An editorial in the Norwegian business newspaper Finansavisen could not rule out the possibility of bankruptcy.[7] In September 2008, Norske Skog Korea was bought by Morgan Stanley Private Equity of Asia and Shinhan Private Equity.

Sven Ombudstvedt became CEO of Norske Skog in January 2010. Ombudstvedt was previously chief financial officer and a management board member of Yara International and strategy director of Norsk Hydro. Ombudstvedt succeeded Christian Rynning-Tønnesen.[8]

Norske Skogindustrier ASA went bankrupt in 2017 and was delisted from the Oslo Stock Exchange.[9] However, the operations continued, and was reorganized under a new parent company, Norske Skog ASA, which was reintroduced to the Oslo Stock Exchange in October 2019.[10]

Over the following years, the group has diversified in order to counter the downward trend of the publication paper market. In 2020, it was announced that two paper machines, at Bruck in Austraia and Golbey in France, would be converted to produce recycled containerboard.[11] The company is also pursuing fibre-based growth initiatives under the brand names Cebina[12] and Cebico[13] as well as energy related projects such as biogas. Norske Skog is also the major shareholder of Circa Group, which is listed separately on Euronext Growth with the ticker CIRCA.

List of mills

As of 2021

Former mills

This list may be incomplete

See also

References

  1. ^ "Norske Skog / Norske Skog to enter the European packaging markets". www.norskeskog.com. Retrieved 2021-09-14.
  2. ^ "Business units | Norske Skog". www.norskeskog.com. Retrieved 2021-09-14.
  3. ^ Union scrapped by minimum margin Aftenposten, October 5, 2005
  4. ^ Her legger Norske Skog ned uten protester e24.no (in Norwegian)
  5. ^ Norske Skog stenger en maskin nrk.no March 4, 2008
  6. ^ Lavest på 25 år ("Lowest in 25 years") e24.no (in Norwegian)
  7. ^ Hegnar: Ikke utenkelig at Norske Skog går konkurs ("Hegnar: Not unthinkable that Norske Skog will go bankrupt") hegnar.no March 14, 2008 (in Norwegian)
  8. ^ Press release[permanent dead link] Cision
  9. ^ "NewsWeb". Oslo Stock Exchange.
  10. ^ "NewsWeb". newsweb.oslobors.no. Retrieved 2021-09-14.
  11. ^ "Norske Skog to enter packaging market". Printweek. Retrieved 2021-09-10.
  12. ^ "CEBINA | Norske Skog". www.norskeskog.com. Retrieved 2021-09-14.
  13. ^ "CEBICO | Norske Skog". www.norskeskog.com. Retrieved 2021-09-14.

External links

  • Official website


Coordinates: 59°53′50.25″N 10°36′18.97″E / 59.8972917°N 10.6052694°E / 59.8972917; 10.6052694