Another delay for conversion at Norske Skog Golbey

Norske Skog has confirmed that the start-up of production of the containerboard machine in Golbey is postponed to the second half of 2024 due to delivery delays. It had already said start-up was delayed to Q2 2024, but now updated the timeline.

The company said that considerable effort will be devoted going forward to ensure that the conversion project is completed within the new framework. The net investment amount for the conversion project at Norske Skog Golbey will increase from €265m to €300m. As of the 3rd quarter of 2023, a net €200m has been invested in the project. The increase is generally due to increased purchase prices for goods and services throughout the project period as well as somewhat delayed deliveries of equipment.

“The Golbey conversion project has a massive scope and has been carried out during a period of very high inflation and challenging global supply chains,” says Geir Drangsland, CEO, Norske Skog. “Delayed deliveries and associated consequences have necessitated the project team in Golbey, along with the company’s leadership, to revise the project parameters. This has been a demanding process due to the project’s complexity and because it deviates from the plans we have communicated so far. Therefore, there will be a strong focus going forward to ensure that we deliver the project within these new parameters.”

The Golbey project will convert PM1 from producing newsprint to recycled containerboard. The machine will have a capacity of 550,000 tonnes and is expected to reach 95% utilisation within 2-3 years after startup. Together with the already converted PM3 in Bruck, this project will provide Norske Skog with a total capacity of 760,000 tons of containerboard.

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