Following a rockslide and subsequent production stop at Saugbrugs PM6 in April this year, Norske Skog has decided to restart production at the previously idled PM5. The restart of PM5 allows Norske Skog to continue supplying SC magazine paper to its customers and keep its market position.
«The decision to restart production at PM5 is important to maintain Saugbrugs as a preferred supplier of SC paper in Europe, while the restoration work is ongoing at the PM6 plant» says Per Ivar Berg, managing director at Norske Skog Saugbrugs.
The business interruption at PM6 is covered by insurance. Cash flows relating to the restart and production from PM5 will be netted against the insurance coverage, thus the financial impact for Norske Skog Saugbrugs will be largely neutral.
Prior to being idled in late 2020, PM5 had a production capacity of up to 100,000 tonnes of SC magazine paper. Saugbrugs PM6 has a capacity of 260,000 tonnes SC magazine paper. Operations at Saugbrugs PM4 continue with its capacity of 100,000 tonnes of SC paper.