Norske Skog Bio Bio Mill in Force Majeure Situation

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Norske Skog, Lysaker, Norway, reports that its Bio Bio newsprint mill in Concepción, Chilé, has shutdown following the February 27 8.8 magnitude earthquake. Based on preliminary reports on damage to the mill's site and equipment, the company says it will take some time to restart production. Detailed reports on the condition of the mill are currently not available. The company says there were no fatalities or injuries among employees at the mill, which is located near the quake's epicenter. Bio Bio has a production capacity of 130,000metric tpy, mainly newsprint, and employs 240 people.

Norske Skog says it is taking all steps required to try to restart the operations at Bio Bio as soon as possible, "taking into account full safety of the mill's employees." The company adds, however, that Bio Bio is unable to perform any of its contractual obligations due to an impediment beyond its control, and since February 27 and until further notice, is in a situation of force majeure ("act of God") with respect both to its customers and suppliers.