Norske Skog Completes Long-Term Energy Deal for Skogn Mill
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Norske Skog, Lysaker, Norway, this week signed a long-term energy contract with NTE (Nord-Trøndelag Elektrisitetsverk) for the supply of electricity for its paper mill at Skogn, Norway. The new agreement, together with an agreement that was signed with Statkraft last year, secures Norske Skog Skogn sufficient energy for full operation of the mill. The agreement term is seven years from Jan. 1, 2012. It ensures a supply of 0.4 TWh per year until Dec. 31, 2018.
"We are very pleased with this agreement. Norske Skog Skogn is important both for the group and for the forest industry in central Norway. This is an important contribution to securing jobs in Skogn," said Sven Ombudstvedt, president and CEO in Norske Skog,
Skogn is one of the most environmentally sound and effective paper mills in Europe, Ombudstvedt notes, adding that a strong Norwegian krone and challenging market conditions in the industry means that the mill must have access to stable and secure energy supplies at an acceptable price to maintain operations.
"NTE is pleased to have in place an agreement with a key energy-intensive industrial firm in our region. Norske Skog at Skogn is an industry cornerstone in North-Trøndelag, with significant wealth creation and employment. The energy agreement also correlates well with our strategy for hedging energy production," NTE CEO Torbjørn R. Skjerve said.
Norske Skog Skogn employs 450 people. Production started in 1966. The mill produces newsprint, with the U.K as its largest single market.
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