Norske Skog sells its shares in the Shanghai mill and restructures
its activities in China>
Norske Skog sells its shares in the Shanghai mill and restructures its activities in China
(Thomson Reuters ONE) - Norske Skog sells its 56 per cent stake in the newsprint millShanghai Norske Skog Potential Paper (SNP) and restructures thegroup's other activities in China in order to improve profitability.Norske Skog's activities in China consist of the two newsprint millsSNP and Norske Skog Hebei as well as the administration and salesoffice in Shanghai. Norske Skog Hebei was completed in 2005 and has anewsprint production capacity of 330,000 tonnes. Norske Skog Hebei isone of the most modern newsprint mills in China.SNP has a newsprint production capacity of 145,000 tonnes, and isthus one of the smallest mills in Norske Skog's global portfolio.Since 2005, Norske Skog has owned SNP in partnership with PotentialIndustries (34 per cent) and Shanghai Baoshan Shi Dong-kou Economicand Trading General Co (10 per cent).An agreement has been made under which Potential Industries will takeover all of Norske Skog's shares in SNP. The transaction entails thatall debts and other commitments remain with SNP. Had Norske Skogcontinued to be an owner of the mill, the group would have had toinject additional capital to maintain operations at SNP."The sale of SNP frees up resources for the work to improveprofitability at Norske Skog Hebei, while at the same timestreamlining sales and administration in China. Avoiding further cashinjections was also important for Norske Skog," says CEO ChristianRynning-Tønnesen.The sale entails an accounting loss of NOK 255 million for NorskeSkog. This will be recorded by minus NOK 315 million in the accountsfor the second quarter of 2009, and by NOK 60 million from positivetranslation differences in the accounts for the third quarter of2009. The new owners will assume all debt in SNP. This reduces NorskeSkog's gross interest-bearing debt by approximately NOK 150 million.The transaction is contingent upon approval from Chinese authorities.Such approval is expected by the end of September this year.Oxenøen, 13 July 2009Norske SkogCorporate affairsFor further information:Media: The financial market:Vice president corporate affairs Vice president investorTom Bratlie relations Jarle LangfjæranMob: +47 905 21 904 Mob: +47 909 78 434This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
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Datum: 13.07.2009 - 08:00 Uhr
Sprache: Deutsch
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