Norske
Skog said that due to excess capacity in the coated mechanical market, the
company will temporarily idle paper machine (PM) 4 at its Walsum mill in
Duisburg, Germany, beginning in mid-December.
Norske
Skog did not say how long a time it expected the machine to be down for.
PM
4 has an annual capacity of 225,000 tons.
The
Walsum mill's second paper machine, PM 10, will continue to produce LWC (Light
Weighted Coated) magazine paper at an annual capacity of 200,000 tons.
"The
temporary idling of capacity at the Walsum mill in Germany is required to both
create a better balance between demand and supply, and to avoid unprofitable
production at Walsum," said Mr Sven Ombudstvedt, CEO and President of
Norske Skog. "Despite years of great efforts of the staff to reduce costs,
the decision is unfortunately unavoidable."
Norske
Skog said that customers will be served from the company's other mills and
paper machines, and all existing supply commitments will be honored.
