Norske Skog (NSKOG) Status update summary

Investment decision and capacity

• Board approved Golbey PM1 conversion from standard newsprint to recycled containerboard, adding 550,000 tonnes of capacity and bringing total containerboard capacity to 760,000 tonnes.

• Golbey and Bruck conversions are expected to deliver 760,000 tonnes of lightweight containerboard made from 100% recycled fibre; Golbey production will use green energy.

• The approximately EUR 350 million investment covers Golbey PM1 and Bruck PM3; Bruck’s final investment decision was announced on 23 April 2021.

Financing and returns

• Golbey conversion investment is approximately EUR 250 million; financing facilities of approximately EUR 175 million are being syndicated, subject to final documentation and export credit agency approval.

• Remaining Golbey investment is to be funded from cash on balance and operating cash flows.

• Converted machines are expected to generate annual EBITDA of approximately NOK 700–800 million in 2025/26, based on historical trend prices for containerboard and recycled fibre.

Timeline and operations

• Golbey PM1 recycled containerboard production is planned to start in Q4 2023, ~1 year after Bruck PM3; full production of 550,000 tonnes of lightweight testliner and fluting is expected in H2 2026.

• Green Valley Energie, a JV of Pearl Infrastructure Capital, Veolia Industries Global Solutions and Norske Skog Golbey, will build an adjacent biomass facility to provide sustainable steam for containerboard and newsprint production.

• Golbey’s second machine, with 330,000 tonnes of standard and improved newsprint capacity, will continue production unaffected by the conversion.