Norske Skog plans USD 90.8m rebuild of Saugbrugs PM6 for kraftliner or magazine paper
Norske Skog is 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 90.8m (NOK 850m), with start-up expected in the first half of 2028. The announcement accompanied third-quarter 2026 results showing EBITDA of USD 47.9m (NOK 448m), lifted by a USD 36.1m (NOK 338m) gain on a property sale to Norwegian Nuclear Decommissioning, while production problems at its Golbey PM1 packaging paper machine in France cut volumes and held segment EBITDA to 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.
- Estimated investment of USD 90.8m (NOK 850m) to rebuild Saugbrugs PM6, with start-up in H1 2028
- Rebuilt PM6 would make 300,000 tonnes/year of TMP-based kraftliner or 230,000 tonnes of SC magazine paper
- Q3 2026 group EBITDA was USD 47.9m (NOK 448m), up from USD 7.8m (NOK 73m) in Q2 2026
- Q3 result included a USD 36.1m (NOK 338m) gain on a property sale to Norwegian Nuclear Decommissioning, with cash proceeds of USD 82.3m (NOK 770m) received in early October
- Packaging paper segment EBITDA was zero in Q3, with Golbey PM1 delivering EBITDA of USD -4.3m (NOK -40m) on 60,000 tonnes after drought, unplanned maintenance and press crushing issues
- Net interest-bearing debt was USD 473.1m (NOK 4,428m) at quarter end; significant debt repayments are scheduled for Q4 2026
- Group packaging paper segment shipments fell to 115,000 tonnes in Q3 2026 from 122,000 tonnes in Q2 2026.
- Norske Skog's Bruck, Austria PM3 line shipped 55,000 tonnes in Q3 2026 with positive EBITDA of USD 4.3m (NOK 40m), offsetting Golbey's losses.
- Norske Skog expects conditions at Golbey to improve in Q4 2026, with PM1 reaching full capacity only in 2027.