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Norske Skog Says Investment to Increase for Machine Conversion Project at Golbey Mill

Golbey paper machine
The Golbey project will convert PM1 at Norske Skog Golbey from the production of newsprint to recycled containerboard. The machine will have the capacity to produce 550,000 tonnes per year.

Nov. 14, 2023 – Norske Skog announced that the investment to convert Paper Machine 1 (PM1) from the production of newsprint to recycled containerboard at its Golbey mill in France has increased by EUR 35 million due to increased purchase prices for goods and services throughout the project period as well as somewhat delayed deliveries of equipment.

The net investment amount for the conversion project will increase from EUR 265 to EUR 300 million. As of the third quarter of 2023, a net EUR 200 million has been invested in the project, , the company said.

In addition, the start-up of production on PM1 is postponed to the second half of 2024 due to delivery delays. Considerable effort will be devoted going forward to ensure that the conversion project is completed within the new framework, Norske Skog said.

“The Golbey conversion project has a massive scope and has been carried out during a period of very high inflation and challenging global supply chains,” explained Geir Drangsland, CEO of Norske Skog. “Delayed deliveries and associated consequences have necessitated the project team in Golbey, along with the company’s leadership, to revise the project parameters.

“This has been a demanding process due to the project’s complexity and because it deviates from the plans we have communicated so far. Therefore, there will be a strong focus going forward to ensure that we deliver the project within these new parameters,” Drangsland concluded.

The Golbey project will convert PM1 at Norske Skog Golbey from the production of newsprint to recycled containerboard. The machine will have the capacity to produce 550,000 tonnes per year and is expected to reach 95% utilization within 2-3 years after startup.

Together with the already converted paper machine (PM3) in Bruck (Austria), this project will provide Norske Skog with a total capacity of 760,000 tons of containerboard.

Norske Skog is a leading producer of publication paper with strong market positions and customer relations in Europe and Australasia. The Norske Skog Group operates four mills in Europe, two of which will produce recycled packaging paper following ongoing conversion projects. In addition, the Group operates one paper mill in Australia.

SOURCE: Norske Skog

SOURCE: https://www.paperage.com/