Norske Skog has agreed to sell its Singburi mill in Thailand to a Thai industrial group for a total consideration of USD 33 million. The transaction is part of an already communicated strategy to improve Norske Skog`s financial position. The new owner plans to continue producing newsprint at the mill.
- The divestment is part of our strategy to improve Norske Skog`s cash flow and financial position. We are very pleased to be able to sell the operations in Thailand to a buyer with long-term plans for the mill, says Sven Ombudstvedt, president and CEO of Norske Skog.
The Singburi mill has a total newsprint production of approximately 125 000 tons, and is the sole producer of newsprint in Thailand. The mill has 239 employees.
The transaction will have limited operational impact on the rest of Norske Skog. The financial and operational closing of the transaction is expected to take place in fourth quarter of 2013. The transaction will give a small financial gain, and the final accounting effects will be disclosed in the 2013 fourth quarter financial statements.
Oslo, 7 October 2013
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Source: Norske Skog via Thomson Reuters ONE