Norske Skog has decided to extend the consent solicitation deadline for the ongoing recapitalization proposal from 29 September until Tuesday 3 October at 17:00 CET. The consent solicitation deadline has been extended from Friday 29 September until Tuesday 3 October 2017 at 17:00 CET. Norske Skog will use the period prior to the new expiration deadline to continue discussions with various stakeholder groups to try to achieve sufficient support for a consensual recapitalization solution for the Norske Skog group. The Board of Directors will continue to follow and evaluate the situation thoroughly during this period. - The recapitalization process is challenging, as we knew it would be, but we want to allow time to finalize our discussions with the various stakeholders. We believe that the extension of the consent deadline will improve the chances of reaching a solution, especially after the last day's actions from different stakeholders. As we have previously made clear, the board of Norske Skogindustrier ASA firmly believes that only less beneficial alternatives to a consensual solution exist. Norske Skog has 7 profitable business units that will continue normal operations regardless of the outcome of the consent solicitation process," said Mr. Christen Sveaas, Chairman of Norske Skogindustrier ASA.
The net investment amount for the conversion project at Norske Skog Golbey will increase from EUR 265 to 300 million. As of the 3rd quarter of 2023, a net EUR 200 million has been invested in the project. The increase is generally due to increased purchase prices for goods and services throughout the project period as well as somewhat delayed deliveries of equipment. The start-up of production of packaging in Golbey is postponed to the second half of 2024 due to delivery delays. Considerable effort will be devoted going forward to ensure that the conversion project is completed within the new framework.
“The Golbey conversion project has a massive scope and has been carried out during a period of very high inflation and challenging global supply chains. Delayed deliveries and associated consequences have necessitated the project team in Golbey, along with the company’s leadership, to revise the project parameters. This has been a demanding process due to the project’s complexity and because it deviates from the plans we have communicated so far. Therefore, there will be a strong focus going forward to ensure that we deliver the project within these new parameters,” says Geir Drangsland, CEO of Norske Skog.
The Golbey project will convert a paper machine (PM1) from producing newsprint to producing recycled containerboard. The machine will have a capacity of 550,000 tonnes and is expected to reach 95% utilisation within 2-3 years after startup. Together with the already converted paper machine (PM3) in Bruck, this project will provide Norske Skog with a total capacity of 760,000 tons of containerboard.