Norske Skog (NSKOG) Project Update summary

Strategic growth and portfolio

• Strategy combines publication-paper cash-flow optimisation with renewable packaging, fibre and energy diversification, and growth in higher-value markets.

• Portfolio includes 760,000 tonnes of planned recycled containerboard capacity, plus biochemicals, materials, waste-to-energy, biogas and biomass energy initiatives.

• Circa projects include 1,000 tonnes of biochemicals capacity targeted for Q1 2023; CEBINA and CEBICO pilot capacities are 500 and 300 tonnes, respectively.

Containerboard investment and delivery

• Board-approved Golbey and Bruck projects total EUR 350m investment, with ~EUR 245m debt financing; first production is targeted for Q4 2022.

• Bruck PM3 conversion targets 210,000 tonnes of containerboard capacity and Q4 2022 start-up; estimated capex is ~EUR 100m.

• Golbey PM1 conversion targets 550,000 tonnes and Q4 2023 start-up; estimated capex is ~EUR 250m. PM2 is identified as a future conversion candidate.

• Containerboard debt financing is ~70% of capex, with ECA guarantees covering 50–60% of the debt; the remaining EUR 105m is to be funded by cash and cash flows.

• Bruck waste-to-energy plant start-up is targeted for Q2 2022, with expected EBITDA of NOK 200m; Bruck containerboard production is targeted for Q4 2022.

Market position and outlook

• European demand for recycled fluting and unbleached testliner is ~24m tonnes, with annual growth of 500,000–700,000 tonnes, or 2–3%.

• The market absorbed ~2.4m tonnes of capacity additions over the prior 18 months; ~1m tonnes of further capacity was expected through 2023, including the two planned machines.

• Containerboard prices continued to rise despite new capacity additions, following significant capacity introduced during 2020 and into 2021.

• Golbey PM1 and Bruck PM3 are positioned among Europe’s most competitive machines, supported by scale, location, recycled-fibre market presence and sustainable steam supply.