Norske Skog ends Norske Skog Klabin joint venture in Brazil

Norske Skogsindustrier ASA said it has terminated its Norske Skog Klabin joint venture in Brazil, in accordance with the original agreement, which was created in Feb 2000.

The joint venture's paper machine, with an annual capacity to produce 130,000 tonnes of newsprint, has now been delivered back to Klabin and will hereafter produce packaging grades, said Norske Skog.

After the termination of the Norske Skog Klabin joint venture, Norske Skog said customer relations and market share will be maintained by shipping newsprint from mills in Europe, it said.

Longer term, Norske Skog plans to build a second paper machine at its Pisa site in Brazil, thereby capitalising on Pisa's existing infrastructure and the low-cost wood from nearby plantations, said Norske Skog.

AFX-EuropeFocus