NND to Acquire Properties at Norske Skog Saugbrugs Site

Norske Skog Saugbrugs AS (“Saugbrugs”) and Norsk Nukleær Dekommisjonering (“NND”), a Norwegian government agency under the Ministry of Trade, Industry and Fisheries, have agreed on a transaction whereby NND will become the owner of certain properties at the Saugbrugs industrial site in Halden. NND will use the properties for the decommissioning of the Halden research reactor, which is situated next to the industrial site.

Saugbrugs and NND have been in dialogue for several years regarding the planned work to decommission the Halden research reactor which was idled in 2018. The Saugbrugs industrial site is located next to the reactor facility and is thus well placed to accommodate the decommissioning work which is expected to last for 25 to 30 years.

The properties include areas north of Tistedalsgata and the machine hall for paper machines 4 and 5 (“PM4-5”). NND is in the planning phase of the decommissioning project and hand over of the properties is expected in the second half of 2028. Saugbrugs will lease the properties until hand over and has certain obligations related to this.

“We are very pleased to have found a solution together with NND that will facilitate an orderly and well managed decommissioning process. We continue to review a rebuild of PM6 for production of SC magazine paper and kraftliner. We expect to provide an update on these processes during the second quarter this year,” says Geir Drangsland, CEO of Norske Skog.

The transaction will be carried out as an asset sale and is subject to customary conditions and public granting of the consideration amount. The transaction is expected to generate an accounting gain, recognized as other operating income, of NOK 320 million in the first quarter and estimated at NOK 330 million in the second quarter of 2026. Net payment of approximately NOK 720 million is expected in the second quarter of 2026.

“We have been very impressed by the openness and willingness Norske Skog has shown to understand our needs. We will now seek the final approvals required to complete the transaction and continue with the planning process for the decommissioning project. The project will generate significant activity in Halden over the coming decades, and we aim to be a strong supporter of the community and our neighbours, carrying out the project in a safe, secure and responsible manner,” says Pål Mikkelsen, Director of NND.