Norske Skog to invest EUR 72 million at Bruck paper mill
The Board of Directors in Norway-headed forest industry major Norske Skog AS has approved a EUR 72 million investment in a new 50MW wide range energy boiler at the Norske Skog Bruck paper mill in Austria. The investment will improve the carbon footprint, further strengthen the mill’s profitability and create a new business beyond publication paper. The new revenue streams will be derived from utilizing refuse-derived fuels (RDF) and paper production residuals.
Norske Skog is a leading producer of publication paper with strong market positions in Europe, where it occupies a top-tier publication paper position, and Australasia, where Norske Skog is a leading producer of publication paper in a concentrated market. Norske Skog’s long-term strategy remains to improve the core business, to convert certain of the Group’s paper machines and to diversify the business within the bioenergy, fibre and biochemical markets.
Norske Skog operates a total of seven paper mills strategically located close to attractive markets and with a total paper production capacity of 2.6 million tonnes, comprising 1.7 million tonnes of newsprint and 0.9 million tonnes of magazine paper (supercalendered and coated mechanical).
Energy plant for Bruck mill
The Bruck paper mill in Austria produces around 125 000 tonnes newsprint and 260 000 tonnes LWC per year. According to a statement, the boiler project fits well with Norske Skog’s strategy of doing attractive energy investments and further increasing the Bruck mill’s cost competitiveness, along with increasing the Group’s exposure to revenue streams beyond publication paper.
This investment fits perfectly with our long term green diversification strategy. This energy plant will represent a step-change in our Bruck mill competitiveness as a publication paper producer and will generate significant cash flow from the start-up in 2022, remarked Sven Ombudstvedt, Chairman of the Board and Chief Executive Officer (CEO) of Norske Skog.
The energy cost saving will come from the reduced consumption of fossil gas and avoidance of purchasing carbon dioxide (CO2) emission allowances; thus, the mill’s carbon footprint will be substantially improved. The boiler project will mainly be financed by external loans from Austrian banks at “very competitive” terms.