Norske Skog plans to rebuild paper machine PM6 at its Saugbrugs mill in Norway for flexible production of either 300,000 tonnes of TMP-based kraftliner or 230,000 tonnes of SC magazine paper, at an estimated cost of USD 91m (NOK 850m), with start-up expected in the first half of 2028. The plan came with third-quarter 2026 results showing EBITDA of USD 48m (NOK 448m), including a USD 36m (NOK 338m) gain on a property sale to Norwegian Nuclear Decommissioning. Production problems at the Golbey PM1 packaging paper machine in France held packaging paper segment EBITDA at zero.
Why this mattersA conversion to kraftliner capacity at Saugbrugs would add fibre-based packaging supply in Europe just as the group's existing Golbey packaging line struggles with output.
- Saugbrugs PM6 rebuild estimated at USD 91m (NOK 850m), with start-up expected in H1 2028.
- Rebuilt PM6 could make 300,000 tonnes of TMP-based kraftliner or 230,000 tonnes of SC magazine paper.
- Q3 2026 EBITDA was USD 48m (NOK 448m), against USD 8m (NOK 73m) in Q2, including a USD 36m (NOK 338m) gain on the NND property sale.
- Cash proceeds of USD 82m (NOK 770m) from NND arrived in early October; significant debt repayments are scheduled for Q4 2026.
- Packaging paper EBITDA was zero: Golbey PM1 shipped 60,000 tonnes at USD -4m (NOK -40m), Bruck PM3 55,000 tonnes at USD 4m (NOK 40m).
- Net interest-bearing debt was USD 474m (NOK 4,428m) at the end of Q3 2026.
- Golbey PM1 packaging paper deliveries fell to 115,000 tonnes from 122,000 tonnes, hit by drought, maintenance and press problems
Norske Skog has approved an investment of up to USD 88.9m (NOK 850m) to rebuild paper machine 6 at its Saugbrugs mill in Halden, Norway, converting the idled unit to flexible production of TMP-based kraftliner or SC magazine paper. Start-up is planned for the first half of 2028, after which production on PM4 and PM5 will cease permanently.
Why this mattersConverting a publication-paper machine adds up to 300,000 tonnes of kraftliner to European supply and permanently removes the PM4 and PM5 graphic paper lines.
- Investment of up to USD 88.9m (NOK 850m) approved for the PM6 rebuild at Saugbrugs, Halden, Norway.
- Rebuilt PM6 capacity up to approximately 300,000 tonnes/year of TMP-based kraftliner or approximately 230,000 tonnes/year of SC magazine paper.
- PM6 has been offline since a rockslide at the site in April 2023.
- Start-up of the rebuilt machine is planned for the first half of 2028.
- Production on PM4 and PM5 will cease permanently once PM6 starts up.
- Financing plans include a sale and leaseback of the PM6 building and property and a potential sale of the mill's administration office.
- An 80-100 MW data centre opportunity at the Saugbrugs site is under exploration as part of financing for the PM6 rebuild
Norske Skog has completed the sale of certain properties at its Saugbrugs publication paper mill in Halden, Norway, to Norwegian Nuclear Decommissioning (NND) for NOK 770m (USD 79.8m). Most of the proceeds will be used to repay short-term debt, with the remainder added to the company's liquidity.
Why this mattersThe disposal strengthens Norske Skog's balance sheet without affecting mill production, as paper producers monetise non-core land assets amid sector overcapacity.
- Sale price: NOK 770m (USD 79.8m)
- Asset: certain properties at the Saugbrugs publication paper mill in Halden, Norway
- Buyer: Norway's nuclear decommissioning agency NND
- Larger share of proceeds to repay short-term debt, remainder to strengthen liquidity
Visy sold the land under its Ettamogah paper mill near Albury, New South Wales, to Australian-American neo-cloud computing company Sharon AI for AUD 50m, with the transfer of 302.37 hectares completed on 29 June 2026. Visy is understood to be leasing the site back to continue its current operations. Sharon AI has not said what it will build and had lodged no development application as of 16 September 2026; Visy paid AUD 85m for the combined land and assets in 2019, buying them from Norske Skog.
Why this mattersMonetising mill land to a data-centre buyer while leasing back the plant gives paper producers a capital release that leaves production capacity untouched.
- The sale of 302.37 hectares at Ettamogah, near Albury, NSW, completed on 29 June 2026 for AUD 50m, according to data lodged with property platform Cotality
- Visy is understood to be leasing the premises back from Sharon AI for its current operations on an ongoing basis
- Visy paid AUD 85m in 2019 for the combined land and assets, acquired from Norske Skog
- Sharon AI, based in Sydney and New York, has not disclosed its plans and had lodged no development application as of 16 September 2026
- Albury MP Justin Clancy has called for guarantees on electricity and water use, infrastructure costs and local jobs; a local petition against a data centre had 350 verified signatures on 16 September 2026
- The Ettamogah site was built in the 1980s for Australian Newsprint Mills and later operated by Norske Skog from 2000, closing as a paper mill in late 2019.
- Visy has used the site as a warehouse and transport depot since 2020 and will remain there as a tenant leasing warehouse and logistics space after the sale.
- Sharon AI states it has 212MW of data centre capacity online or in development and plans to deploy about 64,000 Nvidia GPUs by mid-2027.
