Norske Skog Advances Packaging Paper Capacity and Operational Efficiency in Q3 2025

Norske Skog ASA, a leading European producer of packaging and publication paper, reported notable operational milestones and strategic investments in its third-quarter 2025 report. Project Updates and Operational Highlights Norske Skog formally took over the new containerboard machine PM1 at its Golbey mill in France, producing 28,000 tonnes and delivering 24,000 tonnes during the quarter. The company expects to achieve full utilization of this machine during the first half of 2027. This ramp-up phase has temporarily impacted profitability but sets the stage for long-term capacity gains. At the Skogn mill, modifications are underway to convert PM1 operations to flexibly produce both newsprint and book paper from 2026 onwards, addressing evolving market demands. A decision on the potential restart of the PM6 machine at Norske Skog Saugbrugs is anticipated by the end of 2025, reflecting ongoing efforts to optimize production assets. Investment Plans and Capital Expenditure The company continues to invest strategically with capital expenditures supporting the Golbey PM1 project, book paper conversion at Skogn, and routine maintenance across its mill portfolio. In Q3, maintenance capital expenditures totaled NOK 29 million, part of overall investments amounting to NOK 216 million for the quarter. Norske Skog expects to receive EUR 50 million in investment grants and energy certificates for the Golbey containerboard project over 2025-2027, supporting sustainability and efficiency initiatives. Maintenance and Efficiency Improvements Maintenance activities remain a priority as Norske Skog balances efficiency improvements with cost discipline. Ongoing profitability initiatives include reviews of variable and fixed costs across all mills and working capital optimization, helping maintain competitive positioning in a volatile market. Outlook With market challenges and price volatility persisting, Norske Skog emphasizes cost control, capacity optimization, and asset flexibility. The ongoing transformation initiatives and investment grants are positioned to enhance the company’s operational resilience and long-term growth trajectory.