Closure of Follum approved

The corporate assembly of Norske Skog on Thursday decided to follow the board's recommendation to cease paper production at its factory Norske Skog Follum, near Hønefoss.

- The corporate assembly has today considered the proposal from the board of directors of Norske Skog ASA to permanently close the paper production at Norske Skog Follum AS. The corporate assembly, which consists of 12 shareholder elected representatives and 6 employee elected representatives, to a total of 18 members, decided against 4 votes to support the resolution of the BoD from yesterday. This is obviously a difficult matter for the employees and suppliers at Follum, but the decision strengthens the basis for future competitiveness and profitability at Norske Skog's other Norwegian operations. The corporate assembly has confidence in the way the BoD has considered this matter, says Tom Ruud, chair of the corporate assembly of Norske Skog.

- This has been a difficult time for Norske Skog, but it is our opinion that it is imperative to reduce capacity. Continued operation of Follum with another owner would make the situation considerably more difficult for our mills in Trøndelag and Østfold. Today's decision means continued full operations at our mills in Skogn and Halden, although it is not possible to issue guarantees for the future for these mills, says President and CEO of Norske Skog, Sven Ombudstvedt.

- Norske Skog will assist the Follum employees as much as possible in the coming period. Norske Skog would like to arrange for new activities in cooperation with local authorities and businesses, says Ombudstvedt.

Norske Skog Follum is located in the town of Hønefoss and has 356 employees. The mill produces improved newsprint, magazine paper and book paper. Annual production capacity is 290 000 tonnes.

(NRK/Press release)

Friday, 09 December 2011 07:31