Norske Skog closes PM No. 2 at its 150,000 tonnes/year Tasman newsprint mill in Kawerau, New Zealand, resulting in halving production at the site, 110 layoffs

Kendall Sinclair

LOS ANGELES , January 8, 2013 (Industry Intelligence Inc.) – Norske Skogindustrier ASA has closed its PM No. 2 at the Tasman newsprint mill in Kawerau, New Zealand, resulting in 110 layoffs and halving production at the site, Stuff.co.nz reported Jan. 9.

The company had announced in September the permanent shutdown of the paper machine, which produced 150,000 tonnes per year, SunLive.co.nz reported Jan. 9.

Norske Skog will continue to operate one paper machine at the mill, which will produce newsprint for markets across New Zealand, Australia and the Pacific Islands.

The layoffs affecting 110 people will take effect over the next three to four months.

The site had a workforce of 290 employees, SunLive.co.nz reported.

In closing the paper machine, the company cited a decline in newsprint demand, extra capacity in the region and unfavorable exchange rates that made exports to Asia unprofitable.

The mill’s challenge is to become a low-cost newsprint producer and to capture new opportunities, said Peter McCarty, general manager of the Norske Skog Tasman mill.

The primary source of this article is Stuff.co.nz, Wellington, New Zealand, on Jan. 9, 2013.

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