world news - 08.11.2006
The forest company Norske Skog is in the red
Financial
results for the third quarter prove that basically the company's
finances are better than in the previous quarter. This is encouraging
for all those working for the company, which is now concentrating on
its ambitious savings programme. Mr Rynning-Tønnesen says that the
company aims at an 11 per cent return on working capital before the end
of 2008.
On most of the company's markets the sales volume of newsprint shows a
positive trend and in Australia sales prices have been reduced. The
European market for coated paper and the newsprint market in China are
still problematic with overcapacity and pressures to reduce prices.
Developments in Europe are interesting with considerable investments in
newspapers distributed free of charge.
Things are going in the right direction and there are reasons for a
cautious optimism. The measures taken for implementing the
restructuring programme are already yielding good results for the third
quarter. Mr Rynning-Tønnesen points out that a weaker exchange rate for
the NOK also helps to improve competitiveness.
Norske Skog is now implementing an extensive reorganization programme
concerning the entire group, which means for example slimming and a
staff reduction of about 1 000 employees. In the first quarter the
company closed down its Union production plant and in August also a
paper making machine in Tasmania and in September two machines at its
plant in Jeonju in Korea. These close downs mean that Norske Skog has
reduced its production capacity for newsprint by 10 % in the course of
2006.
See also:
- — Metsäliitto has sold its forest holdings in Latvia
- — Sino-Forest 3Q 2006 net income increased by 36.0% to $45.1 million
- — Flooring: Three new licenses signed with Välinge
- — Pellets are becoming increasingly popular in Sweden
- — Extensive snow damage to forests in Northern Sweden
