Norske Skog
Encyclopedia
Norske Skogindustrier ASA or Norske Skog, which translates as Norwegian Forest Industries, is a Norwegian pulp and paper company
based in Oslo
, Norway and established in 1962. The corporation is the world's largest producer of newspaper
(Newsprint
) and magazine
paper
, with 18 mills around the world.
at Skogn
in Norway
, with the plant opening in 1966 and a second paper machine in 1967. Half the capital for the project was issued by the Norwegian Forest Owners Association
. In 1972 Norske Skog started a cooperation with Follum Fabrikker
in Hønefoss
. By 1989 Norske Skog had acquired Follum Fabrikker and Union
in Skien as well as Saugbrugsforeningen
in Halden
. With this Norske Skog controlled all the pulp and paper mills in Norway.
The first international acquisition came in 1992 when Papeteries de Golbey in Lorraine, France. Norske Skog later bought the entire plant in 1995. Norske Skog expanded with purchases in Austria
in 1996 and the Czech Republic
in 1997. In 1998 Norske skog purchased mills in Thailand
and the Republic of Korea.
In 2000 Norske Skog bought the British Columbia
based Fletcher Challenge Canada
with nine mills and Pacifica Papers (formerly MacMillan Bloedel
) and created NorskeCanada. By 2006 Norske Skog had sold its shares in NorskeCanada and the company has changed its name to Catalyst Paper
.
In September 2005 it acquired the Asian company PanAsia Paper, in turn making Norske Skog Asia's largest producer of newsprint and magazine paper.
The company has suffered from an oversupply in the paper industry and mounting debt. A number of factories have been closed or downsized. The closure of the Union paper mill in Skien
in 2005 caused a massive outcry, including protests from a number of politicians. Further closures include the closure of a factory in Steti
in the Czech Republic
, the indefinite closure of a factory in South Korea
, and the closure of one of the three paper machines at Follum. From March 2007 to March 2008, the value of the Norske Skog stock
plummeted from over 100 kr to below 18 kr An editorial in Finansavisen
could not rule out the possibility of bankruptcy
. In September 2008, Norske Skog Korea was bought by both Morgan Stanley Private Equity of Asia and Shinhan Private Equity.
Sven Ombudstvedt will become CEO of Norske Skog in January 2010. Ombudstvedt was previously chief financial officer
and a management board member of Yara International
and strategy director of Norsk Hydro
. Ombudstvedt will succeed
Christian Rynning-Tønnesen, who will leave the company to become CEO of Statkraft
.
(Hønefoss
, Norway
) Norske Skog Skogn
(Levanger
, Norway) Norske Skog Saugbrugs
(Halden
, Norway) Norske Skog Parenco
(Renkum
, Netherlands
) Norske Skog Bruck (Bruck an der Mur
, Austria
) Norske Skog Golbey (Lorraine
, France
) Norske Skog Štětí (Štětí
, Czech Republic
) Norske Skog Walsum (Duisburg
, Germany
) Norske Skog Bio Bio (Concepción
, Chile
) Norske Skog Pisa (Jaguariaiva
, Brazil
) Norske Skog Boyer (Tasmania
, Australia
) Norske Skog Albury (Albury
, Australia) Norske Skog Tasman (Kawerau, New Zealand
) Hebei Mill (Zhaoxian, China
) Shanghai Mill (Shanghai
, China) Singburi Mill (Sing Buri
, Thailand
)
(Skien
, Norway) (closed 2006) Södra Cell Folla
(Verran
, Norway) (sold 2000) Södra Cell Tofte
(Tofte, Norway) (sold 2000) Catalyst Crofton (Crofton
, Canada
) (demerged) Catalyst Elk Falls (Elk Falls, Canada) (demerged) Catalyst Port Alberni (Port Alberni, Canada) (demerged) Catalyst Powell River (Powell River
, Canada) (demerged) Jeonju Mill (Jeollabuk-do
, Republic of Korea) (renamed to JEONJU PAPER) Chongwon Mill (Chungcheongbuk-do
, Republic of Korea) (renamed to JEONJU PAPER)
Pulp and paper industry
The global pulp and paper industry is dominated by North American , northern European and East Asian countries...
based in Oslo
Oslo
Oslo is a municipality, as well as the capital and most populous city in Norway. As a municipality , it was established on 1 January 1838. Founded around 1048 by King Harald III of Norway, the city was largely destroyed by fire in 1624. The city was moved under the reign of Denmark–Norway's King...
, Norway and established in 1962. The corporation is the world's largest producer of newspaper
Newspaper
A newspaper is a scheduled publication containing news of current events, informative articles, diverse features and advertising. It usually is printed on relatively inexpensive, low-grade paper such as newsprint. By 2007, there were 6580 daily newspapers in the world selling 395 million copies a...
(Newsprint
Newsprint
Newsprint is a low-cost, non-archival paper most commonly used to print newspapers, and other publications and advertising material. It usually has an off-white cast and distinctive feel. It is designed for use in printing presses that employ a long web of paper rather than individual sheets of...
) and magazine
Magazine
Magazines, periodicals, glossies or serials are publications, generally published on a regular schedule, containing a variety of articles. They are generally financed by advertising, by a purchase price, by pre-paid magazine subscriptions, or all three...
paper
Paper
Paper is a thin material mainly used for writing upon, printing upon, drawing or for packaging. It is produced by pressing together moist fibers, typically cellulose pulp derived from wood, rags or grasses, and drying them into flexible sheets....
, with 18 mills around the world.
History
Norske Skog started up in 1962 with the construction of a paper millPaper mill
A paper mill is a factory devoted to making paper from vegetable fibres such as wood pulp, old rags and other ingredients using a Fourdrinier machine or other type of paper machine.- History :...
at Skogn
Skogn
Skogn is a village and former municipality in Nord-Trøndelag county, Norway. It is located in the present-day municipality of Levanger. It is home to the Fiborgtangen industrial area.The village of Skogn is located about southwest of the town of Levanger...
in Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, with the plant opening in 1966 and a second paper machine in 1967. Half the capital for the project was issued by the Norwegian Forest Owners Association
Norwegian Forest Owners Association
Norwegian Forest Owners Association is an association representing 43,000 owners of forest in Norway. The main functions of the organisation is to assist the members, who are mostly farmers, to manage their forest. This includes forestry plans, part of the cutting of timer and negotiating...
. In 1972 Norske Skog started a cooperation with Follum Fabrikker
Norske Skog Follum
Norske Skog Follum is a paper mill located in Follum in Norway. The mill is part of the Norske Skog Corporation and opened in 1873 with the name Follum Fabrikker...
in Hønefoss
Hønefoss
Hønefoss is a city in Buskerud county, Norway, and the center of the municipality of Ringerike.In 1852, Hønefoss received town status and was separated from Norderhov. Hønefoss celebrated its 150th year of township in 2002...
. By 1989 Norske Skog had acquired Follum Fabrikker and Union
Norske Skog Union
Norske Skog Union was a paper mill located in Skien in Norway. The mill was part of the Norske Skog Corporation and opened in 1873 with the name Union Co. The mill had two paper machines that produced 240,000 tonnes of newsprint and book paper. It was closed down in 2006.-History:In 1872 Ulrik...
in Skien as well as Saugbrugsforeningen
Norske Skog Saugbrugs
Norske Skog Saugbrugs is a paper mill located in Halden in Norway. The mill is part of the Norske Skog Corporation and opened in 1859 with the name Saugbrugsforeningen...
in Halden
Halden
is a both a town and a municipality in Østfold county, Norway. The seat of the municipality, Halden is a border town located at the Tista river delta on the Iddefjord, the southernmost border crossing between Norway and Sweden.-History:...
. With this Norske Skog controlled all the pulp and paper mills in Norway.
The first international acquisition came in 1992 when Papeteries de Golbey in Lorraine, France. Norske Skog later bought the entire plant in 1995. Norske Skog expanded with purchases in Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
in 1996 and the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
in 1997. In 1998 Norske skog purchased mills in Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
and the Republic of Korea.
In 2000 Norske Skog bought the British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
based Fletcher Challenge Canada
Fletcher Challenge
Fletcher Challenge is a now defunct multinational corporation from New Zealand, formed in 1981 by the merger of Fletcher Holdings, Challenge Corporation and Tasman Pulp and Paper...
with nine mills and Pacifica Papers (formerly MacMillan Bloedel
MacMillan Bloedel Limited
MacMillan Bloedel Limited, sometimes referred to as "MacBlo", was a Canadian forestry company headquartered in Vancouver, British Columbia. It was formed through the merger of three smaller forestry companies in 1951 and 1959. Those were the Powell River Company, the Bloedel Stewart Welch Company,...
) and created NorskeCanada. By 2006 Norske Skog had sold its shares in NorskeCanada and the company has changed its name to Catalyst Paper
Catalyst Paper
Catalyst Paper Corporation is a Canadian paper manufacturer. Based in Richmond, British Columbia, the company produces paper and pulp for commercial printers, publishers and paper manufacturers in North America, Latin America, the Pacific Rim and Europe...
.
In September 2005 it acquired the Asian company PanAsia Paper, in turn making Norske Skog Asia's largest producer of newsprint and magazine paper.
The company has suffered from an oversupply in the paper industry and mounting debt. A number of factories have been closed or downsized. The closure of the Union paper mill in Skien
Skien
' is a city and municipality in Telemark county, Norway. It is part of the traditional region of Grenland. The administrative centre of the municipality is the city of Skien. Skien is also the administrative centre of Telemark county....
in 2005 caused a massive outcry, including protests from a number of politicians. Further closures include the closure of a factory in Steti
Štetí
Štětí is a town in the Ústí nad Labem Region, Czech Republic....
in the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
, the indefinite closure of a factory in South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
, and the closure of one of the three paper machines at Follum. From March 2007 to March 2008, the value of the Norske Skog stock
Stock
The capital stock of a business entity represents the original capital paid into or invested in the business by its founders. It serves as a security for the creditors of a business since it cannot be withdrawn to the detriment of the creditors...
plummeted from over 100 kr to below 18 kr An editorial in Finansavisen
Finansavisen
Finansavisen is a Norwegian business newspaper with six weekly issues and published in Oslo by Hegnar Media. It had a circulation of 23,274 in 2006. It was established in 1992 by Trygve Hegnar, who is also Editor-in-Chief....
could not rule out the possibility of bankruptcy
Bankruptcy
Bankruptcy is a legal status of an insolvent person or an organisation, that is, one that cannot repay the debts owed to creditors. In most jurisdictions bankruptcy is imposed by a court order, often initiated by the debtor....
. In September 2008, Norske Skog Korea was bought by both Morgan Stanley Private Equity of Asia and Shinhan Private Equity.
Sven Ombudstvedt will become CEO of Norske Skog in January 2010. Ombudstvedt was previously chief financial officer
Chief financial officer
The chief financial officer or Chief financial and operating officer is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to higher management...
and a management board member of Yara International
Yara International
Yara International ASA is a Norwegian-based chemical company. Its largest business area is the production of nitrogen fertilizer, however it also encompasses the production of dry ice, nitrates, ammonia, urea and other nitrogen-based chemicals....
and strategy director of Norsk Hydro
Norsk Hydro
Norsk Hydro ASA is a Norwegian aluminium and renewable energy company, headquartered in Oslo. Hydro is the fourth largest integrated aluminium company worldwide. It has operations in some 40 countries around the world and is active on all continents. The Norwegian state holds a 43.8 percent...
. Ombudstvedt will succeed
Christian Rynning-Tønnesen, who will leave the company to become CEO of Statkraft
Statkraft
Statkraft is a Norwegian state owned electricity company. With a total energy production of 44.9 TWh in 2007, the Statkraft Group is the third largest energy producer in the Nordic region, as well as the largest energy producer based on renewable energy sources in Europe,consisting of 40% of the...
.
List of mills
As of 2008 Norske Skog FollumNorske Skog Follum
Norske Skog Follum is a paper mill located in Follum in Norway. The mill is part of the Norske Skog Corporation and opened in 1873 with the name Follum Fabrikker...
(Hønefoss
Hønefoss
Hønefoss is a city in Buskerud county, Norway, and the center of the municipality of Ringerike.In 1852, Hønefoss received town status and was separated from Norderhov. Hønefoss celebrated its 150th year of township in 2002...
, Norway
Norway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
) Norske Skog Skogn
Norske Skog Skogn
Norske Skog Skogn is a paper mill located in Levanger in Norway. The mill was the first mill in the Norske Skog Corporation and opened in 1962. It has three paper machines and produces 600,000 tonnes of newsprint annually...
(Levanger
Levanger
Levanger is a town and municipality in Nord-Trøndelag county, Norway. It is part of the Innherred region. The administrative centre of the municipality is the town of Levanger...
, Norway) Norske Skog Saugbrugs
Norske Skog Saugbrugs
Norske Skog Saugbrugs is a paper mill located in Halden in Norway. The mill is part of the Norske Skog Corporation and opened in 1859 with the name Saugbrugsforeningen...
(Halden
Halden
is a both a town and a municipality in Østfold county, Norway. The seat of the municipality, Halden is a border town located at the Tista river delta on the Iddefjord, the southernmost border crossing between Norway and Sweden.-History:...
, Norway) Norske Skog Parenco
Norske Skog Parenco
Norske Skog Parenco B.V. is the only newsprint producer in the Netherlands, located at Renkum, near the Rhine. The first paper mill was built on the site in 1720, with the current mill built by Van Gelder Zonen in the beginning of the 20th century...
(Renkum
Renkum
Renkum is a municipality and a town in the eastern Netherlands.The municipality has 31.801 inhabitants and has a land area of 47,12 km². Renkum is situated along the river Rhine The municipality Renkum is part of the Stadsregio Arnhem-Nijmegen.The surrounding of the municipality are mainly...
, Netherlands
Netherlands
The Netherlands is a constituent country of the Kingdom of the Netherlands, located mainly in North-West Europe and with several islands in the Caribbean. Mainland Netherlands borders the North Sea to the north and west, Belgium to the south, and Germany to the east, and shares maritime borders...
) Norske Skog Bruck (Bruck an der Mur
Bruck an der Mur
Bruck an der Mur is a city of some 13,500 people located in the Austrian state of Styria. It is located at the confluence of the Mur and Mürz Rivers. Its manufactures include metal products and paper; Bruck is an important rail junction in the region located on the Graz to Vienna main...
, Austria
Austria
Austria , officially the Republic of Austria , is a landlocked country of roughly 8.4 million people in Central Europe. It is bordered by the Czech Republic and Germany to the north, Slovakia and Hungary to the east, Slovenia and Italy to the south, and Switzerland and Liechtenstein to the...
) Norske Skog Golbey (Lorraine
Lorraine (région)
Lorraine is one of the 27 régions of France. The administrative region has two cities of equal importance, Metz and Nancy. Metz is considered to be the official capital since that is where the regional parliament is situated...
, France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
) Norske Skog Štětí (Štětí
Štetí
Štětí is a town in the Ústí nad Labem Region, Czech Republic....
, Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
) Norske Skog Walsum (Duisburg
Duisburg
- History :A legend recorded by Johannes Aventinus holds that Duisburg, was built by the eponymous Tuisto, mythical progenitor of Germans, ca. 2395 BC...
, Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
) Norske Skog Bio Bio (Concepción
Concepción, Chile
Concepción is a city in Chile, capital of Concepción Province and of the Biobío Region or Region VIII. Greater Concepción is the second-largest conurbation in the country, with 889,725 inhabitants...
, Chile
Chile
Chile ,officially the Republic of Chile , is a country in South America occupying a long, narrow coastal strip between the Andes mountains to the east and the Pacific Ocean to the west. It borders Peru to the north, Bolivia to the northeast, Argentina to the east, and the Drake Passage in the far...
) Norske Skog Pisa (Jaguariaiva
Jaguariaíva
Jaguariaíva is a town and municipality in the state of Paraná in the Southern Region of Brazil.-References:...
, Brazil
Brazil
Brazil , officially the Federative Republic of Brazil , is the largest country in South America. It is the world's fifth largest country, both by geographical area and by population with over 192 million people...
) Norske Skog Boyer (Tasmania
Tasmania
Tasmania is an Australian island and state. It is south of the continent, separated by Bass Strait. The state includes the island of Tasmania—the 26th largest island in the world—and the surrounding islands. The state has a population of 507,626 , of whom almost half reside in the greater Hobart...
, Australia
Australia
Australia , officially the Commonwealth of Australia, is a country in the Southern Hemisphere comprising the mainland of the Australian continent, the island of Tasmania, and numerous smaller islands in the Indian and Pacific Oceans. It is the world's sixth-largest country by total area...
) Norske Skog Albury (Albury
Albury, New South Wales
Albury is a major regional city in New South Wales, Australia, located on the Hume Highway on the northern side of the Murray River. It is located wholly within the boundaries of the City of Albury Local Government Area...
, Australia) Norske Skog Tasman (Kawerau, New Zealand
New Zealand
New Zealand is an island country in the south-western Pacific Ocean comprising two main landmasses and numerous smaller islands. The country is situated some east of Australia across the Tasman Sea, and roughly south of the Pacific island nations of New Caledonia, Fiji, and Tonga...
) Hebei Mill (Zhaoxian, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...
) Shanghai Mill (Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, China) Singburi Mill (Sing Buri
Sing Buri
Sing Buri is a town in Thailand, capital of the Sing Buri province. The town covers the whole tambon Bang Phutsa and parts of Bang Man, Muang Mu, Ton Pho and Bang Krabue, all within Mueang Sing Buri district. As of 2006 it has a population of 19,470.-External links:* *...
, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...
)
Former mills
This list may be incomplete Norske Skog UnionNorske Skog Union
Norske Skog Union was a paper mill located in Skien in Norway. The mill was part of the Norske Skog Corporation and opened in 1873 with the name Union Co. The mill had two paper machines that produced 240,000 tonnes of newsprint and book paper. It was closed down in 2006.-History:In 1872 Ulrik...
(Skien
Skien
' is a city and municipality in Telemark county, Norway. It is part of the traditional region of Grenland. The administrative centre of the municipality is the city of Skien. Skien is also the administrative centre of Telemark county....
, Norway) (closed 2006) Södra Cell Folla
Södra Cell Folla
Södra Cell Folla is a paper mill located in Follafoss, Norway. The mill produces 100 000 tonnes of CTMP pulp per year, and is owned by Södra Skogsägarna.-History:...
(Verran
Verran
Verran is a municipality in Nord-Trøndelag county, Norway. It is part of the Innherred region. The administrative centre of the municipality is the village of Malm...
, Norway) (sold 2000) Södra Cell Tofte
Södra Cell Tofte
Södra Cell Tofte is a pulp mill located in Tofte, Norway. The plant has been owned by Södra Skogsägarna since 2000 when it bought the plant from Norske Skog. The raw material used at the plant is from eucalyptus, pine and spruce. The product is pulp which is used for fine paper. Annual production...
(Tofte, Norway) (sold 2000) Catalyst Crofton (Crofton
Crofton, British Columbia
Crofton, British Columbia, Canada, is a small coastal town that is part of the District of North Cowichan on Vancouver Island in British Columbia. The population is estimated at 2,500 people...
, Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...
) (demerged) Catalyst Elk Falls (Elk Falls, Canada) (demerged) Catalyst Port Alberni (Port Alberni, Canada) (demerged) Catalyst Powell River (Powell River
Powell River, British Columbia
Powell River is a city on the northern Sunshine Coast of southwestern British Columbia, Canada. Most of its population lives near the eastern shores of Malaspina Strait, that part of the larger Georgia Strait between Texada Island and the Mainland...
, Canada) (demerged) Jeonju Mill (Jeollabuk-do
Jeollabuk-do
Jeollabuk-do is a province in the southwest of South Korea. The province was formed in 1896 from the northern half of the former Jeolla province, and remained a province of Korea until the country's division in 1945, then became part of South Korea...
, Republic of Korea) (renamed to JEONJU PAPER) Chongwon Mill (Chungcheongbuk-do
Chungcheongbuk-do
Chungcheongbuk-do is a province in the centre of South Korea. It was formed in 1896 from the northeastern half of the former Chungcheong province...
, Republic of Korea) (renamed to JEONJU PAPER)