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Norske Skog.

Norske Skog, Oxenoen, Norway has begun a comprehensive improvement program that will increase its profitability in the short and long term. "Improvement 2003" intends to boost results by NOK 2 billion (US$ 280 million). The improvements will come primarily from cost reductions and are in addition to the NOK 700 million (US$ 99.6 million) improvement program begun in February 2002.

In other news, Norske Skog, Oxenoen, Norway has received verbal approval by the Norway Minister of Agriculture Lars Sponheim for the sale of its forestlands in eastern Norway. The sales agreement began in November 2001 and covers 16,000 hectares of productive forest. The sale price of NOK 200 million (US$ 28.5 million) will result in a net profit of NOK 155-160 million (US$ 22-22.8 million). The sale does not trigger any tax payments, and the net profit will be part of "other items" in the fourth quarter" 2002 accounts.

Norske Skog has also received approval for the sale of 13 power stations with an annual production capacity of approximately 700 GWh. The sale price of NOK 1.3 billion (US$ 185 million) will result in a net profit of approximately NOK 1 billion (US$ 140 million) before tax. This sale will be part of first quarter 2003 results, and the net profit will be under "other items".
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Title Annotation:Industry News
Publication:Solutions - for People, Processes and Paper
Date:Jan 1, 2003
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