Norske Skog continues its efforts to increase revenue from the growing packaging
market. At the same time, Norske Skog operates in the publication paper market
with declining demand for parts of the group's product portfolio. The markets
have been characterised by overcapacity and low margins for a long period, while
the industry also experiences challenging framework conditions. Significant
inflation in energy and raw material prices has put further pressure on
profitability.
As a result, Norske Skog has conducted a thorough review of its entire cost
base. This process has identified several cost-reducing opportunities and more
efficient organisation of operations. Following this, a number of measures have
been implemented to reduce the group's costs and improve competitiveness. Among
the measures are downsizing of operational and support functions across all
units of the group by up to 200 full time employees during the period from 2025
to 2027. Part of the downsizing will occur through natural attrition and hiring
freezes. The work will not affect the group's capacity or deliveries to
customers.
"The downsizing will significantly lower our costs and strengthen the company's
competitiveness. The efficiency improvement will increase our profitability
while we maintain our deliveries of high-quality publication paper and packaging
paper. The cost savings will strengthen Norske Skog's cost position and enhance
our profitability despite price pressure on several of our products," says CEO,
Geir Drangsland.
About Norske Skog
Norske Skog is a leading producer of publication paper and packaging with four
high quality industrial sites, strong market positions, and close customer
relations in Europe. Norske Skog aims to further diversify its operations and
continue its transformation into growing and high margin markets through a range
of development projects. The Group has approximately 1 700 employees, is
headquartered in Norway, and listed on the Oslo Stock Exchange under the ticker
NSKOG.
For further information:
Norske Skog media:
Vice President Corporate Communication and Public Affairs
Carsten Dybevig
carsten.dybevig@norskeskog.com
Mob: +47 917 63 117
Norske Skog Investor Relations:
Senior Vice President Corporate Finance
Even Lund
even.lund@norskeskog.com
Mob: +47 906 12 919