AUSTRIA (News release) -- The board of directors in Norske Skog AS has approved a Euro 72 million investment in a new 50MW wide range energy boiler at the Norske Skog Bruck mill in Austria.

The investment will improve the carbon footprint, further strengthen the mill's profitability and create new business beyond publication paper. The new revenue streams will be derived from utilizing refuse derived fuels and paper production residuals.

Sven Ombudstvedt, Chairman of the Board and CEO of Norske Skog, commented: "This investment fits perfectly with our long term green diversification strategy. This energy plant will represent a step-change in our Bruck mill competitiveness as a publication paper producer and will generate significant cash flow from the start-up in 2022. "

Norske Skog's long-term strategy remains to improve the core business, to convert certain of the Group's paper machines and to diversify the business within the bioenergy, fibre and biochemical markets.

The boiler project fits well with Norske Skog's strategy of doing attractive energy investments and further increasing the Bruck mill's cost competitiveness, along with increasing the Group's exposure to revenue streams beyond publication paper.

The energy cost saving will come from reduced consumption of gas and no need of purchasing CO2 allowances; thus, the mill's carbon foot print will be substantially improved. The boiler project will mainly be financed by external loan from Austrian banks at very competitive terms.