Selling Norske Skog Hebei in China for RMB 925 million (approx NOK
800 million)
(Thomson Reuters ONE) - Norske Skog has entered into an agreement with Chinese companyShandong Huatai Paper to sell Norske Skog Hebei in Zhaoxian, China.The sale will reduce Norske Skog's net debt by around NOK 800 millionwhile freeing up resources to strengthen the effort to improveprofitability at Norske Skog's other mills."In spite of hard work for several years we have not managed to turna profit in China. In June this year, we announced the sale of ourmill in Shanghai. With the sale of Hebei, Norske Skog is no longerproducing paper in China. The sale of Norske Skog Hebei is acontinuation of our effort to reduce Norske Skog's net debt andimprove profitability," says CEO Christian Rynning-Tønnesen.Norske Skog Hebei has a production capacity of 330 000 tonnes ofnewsprint. There are about 250 employees at the mill.Norske Skog's pro forma net debt after the transaction will be NOK11.4 billion, down from NOK 12.2 after the second quarter of 2009,while gearing will be marginally improved. The sale entails anaccounting loss of around NOK 650 million.Key figures Hebei (million NOK)+-------------------------------------------------------------------+| | 2009 Q2 | 2009 Q1 | 2008 | 2007 | 2006 ||--------------------------+---------+---------+------+------+------|| Operating revenue | 193 | 125 | 799 | 810 | 747 ||--------------------------+---------+---------+------+------+------|| Gross operating earnings | | | | | || (adjusted EBITDA) | -13 | -38 | 8 | 21 | 33 ||--------------------------+---------+---------+------+------+------|| Net profit/loss (ex | | | | | || impairments) | -61 | -92 | -54 | -113 | -113 |+-------------------------------------------------------------------+The transaction is contingent upon approval from Chinese authorities.It is expected that the transaction will be concluded by the end of2009. The accounting effects will be recognised in the third quarterof 2009, and a more detailed overview will be published in connectionwith the presentation of the results for the third quarter of 2009.Norske Skog has operated the two Chinese newsprint mills Norske SkogHebei and Shanghai Norske Skog Potential Paper since 2005, whenNorske Skog bought out its partner and became the sole owner of thePanAsia Paper Company.The buyer, Shandong Huatai Paper, is China's largest producer ofnewsprint, and has also other business activities. The company isheadquartered in the Shandong province in Eastern China and listed onthe Shanghai Stock Exchange.Oxenøen, 24 September 2009Norske SkogCorporate affairsMore information:Media: The financial market:Vice president corporate affairs Vice president investorTom Bratlie relationsMob: +47 905 21 904 Jarle Langfjæran Mob: +47 909 78 434This announcement was originally distributed by Hugin. The issuer is solely responsible for the content of this announcement.
Datum: 24.09.2009 - 09:00 Uhr
Sprache: Deutsch
News-ID 6166
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