Norske Skog announces sale of the Tasman mill industrial site

Norske Skog has completed a transaction for the sale of the Tasman mill industrial site and remaining mill assets to the Australasian pulp, paper, and packaging group Oji Fibre Solutions for approximately NOK 70 million (NZD 10.9 million). The sale of the mill site and realisation of certain other related assets, including buildings, electricity equipment, piping, water, and other infrastructure, will generate a total financial gain on sale of approximately NOK 57 million (NZD 8.8 million).

“We are pleased to finally have concluded this sales agreement with Oji after lengthy process of negotiations and obtaining all required regulatory approvals for the sale. The sale of the Tasman industrial site to Oji is a material steps towards concluding Norske Skog’s long-term business commitment in New Zealand,” commented Geir Drangsland, President and CEO of Norske Skog.

The cash proceeds from the transaction were be received on 10 October 2023. Following this transaction with Oji, Norske Skog only retains some rural land areas, and some other land areas previously used for industrial landfilling and water treatment facilities, where there are ongoing processes to complete the required closure steps before a sale process will be executed also for these areas.