In an advance updating of its second quarter result report to be published on 6 August the company Norske Skog says that weak demand continued in the second quarter of 2009. In general the company's production and sales figures remained the same as in the first quarter, as reported by the Nordic Forest Owners' Association.
The company has made aggregate depreciations of 651 million NOK (73.5 million euro) in the second quarter. The depreciation was 314 million NOK (35 million euro) in the Shanghai factory, 485 million NOK (54,7 million euro) in Norske Skog Parenco in the Netherlands and 424 million NOK (48 million euro) in Hebei in China and in Walsum in Germany. However, a reverse depreciation of 572 million NOK (64 million euro) was made for the Saugsbruk plant in Halden.
On 13 July the company announced the sale of shares in the newsprint plant in Shanghai (SNP). Norske Skog sells its 56 % holding in the newspaper plant Shanghai Norske Skog Potential Paper (SNP). The company will also restructure its other business in China in order to improve profitability.
This transaction will reduce Norske Skog's interest bearing debts by circa 150 million NOK (17 million euro).
The Chinese authorities must approve this transaction. The approval is expected to be granted before the end of September 2009 |
