Norske Skog approves USD 88.7m rebuild of Saugbrugs PM6 for kraftliner

Norske Skog has approved an investment of up to NOK 850m (USD 88.7m) 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 mattersThe rebuild shifts a European publication-paper machine into virgin-fibre packaging board, adding up to 300,000 tonnes of lightweight kraftliner capacity and signalling continued diversification away from declining graphic paper demand.

• Investment of up to NOK 850m (USD 88.7m) 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.

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