Norske Skog signs long-term energy contract with NTE for supply of electricity for its Skogn newsprint mill

OXENOEN, Norway, Jan. 12, 2012 (Press Release) - Norske Skog has signed a long-term energy contract with NTE (Nord-Trøndelag Elektrisitetsverk) for the supply of electricity for the paper mill at Skogn.

The new agreement, together with an agreement that was signed with Statkraft last year, secures Norske Skog Skogn sufficient energy for full operation of the mill. The agreement has been entered into on commercial terms and has a duration of 7 years from 1 January 2012. The new agreement with NTE ensures supply of 0.4 TWh per year until 31.12.2018.

We are very pleased with this agreement. Norske Skog Skogn is important both for the group and for the forest industry in central Norway. This is an important contribution to securing jobs in Skogn, says president and CEO in Norske Skog, Sven Ombudstvedt.

Skogn is one of the most environmentally sound and effective paper mills in Europe. A strong Norwegian krone and the challenging market conditions in the industry, means that the mill must have access to stable and secure energy supplies at an acceptable price in order to maintain operations, says president and CEO in Norske Skog, Sven Ombudstvedt.

NTE is pleased to have in place an agreement with a key energy-intensive industrial firm in our region. Norske Skog at Skogn is an industry cornerstone in North-Trøndelag, with significant wealth creation and employment. The energy agreement also correlates well with our strategy for hedging energy production, says CEO in NTE, Torbjørn R. Skjerve.

Norske Skog Skogn employs 450 people. Production started in 1966. The mill produces newsprint, with the United Kingdom as the largest single market.