Norske Skog curbs output at Saugbrugs and Tasman paper mills due to COVID-19 pandemic
April 15, 2020
NORWAY (News release) -- Norske Skog ASA closely monitors the coronavirus (COVID-19) outbreak and continuously implements adequate measures to reduce the risk for employees and ensure continuity of operations. Norske Skog adheres to the individual recommendations and measures taken by the national authorities.
Sven Ombudstvedt, CEO of Norske Skog, comments: "Our top priority is to ensure the health and safety for our employees. The challenge in the long run will be to secure both in- and outbound logistics of raw materials and finished goods under the current cross border transportation restrictions. However, we are confident that we will meet customer needs and expectations also in this situation. We will continue to communicate closely with suppliers, customers, other stakeholders and the financial market."
Norske Skog has and will closely monitor the development of the coronavirus, and corresponding effects on our supply chains and markets. As earlier communicated, Norske Skog will adjust operational activity to market response, and will therefore implement the following necessary actions as a result of the corona virus situation:
*In France, the Golbey mill has now full production at both machines after a 14 day stop at one paper machine (PM2) due to a 14 day corona quarantine.
*In Norway, Saugbrugs has ceased production on two paper machines (PM4 and PM5) due to negative market developments as a result of the corona virus restrictions. As a result of this, 173 employees are temporarily laid off. In addition, 25 administrative personnel at headquarters has been temporarily laid off as a result of the corona situation.
*In New Zealand, the production at the Tasman mill has ceased production from 13 April due to national lock down restrictions. Nature's Flame pellets production has been deemed essential for domestic, industrial and public heating. We are currently rearranging our supply chain in the entire Australasian region to reflect the situation.
In general, the corona situation will not affect our strategy and the on-going tasks to improve the core business, convert certain of the group's paper machines and diversify the business within bioenergy, fibre and biochemicals. Norske Skog will publish the Q1 2020 results on April 23, and the Covid-19 restrictions will have marginal impact on the first quarter results.
