Norske Skog To Invest $84 million in Australia, While Downsizing New Zealand Operations


Norske Skog, a world leading manufacturer of newsprint and magazine paper, has announced they will invest $84 million in its Boyer Mill in Tasmania with the assistance of State and Federal Governments.

The Premier, Lara Giddings, welcomed the confirmation that Norske Skog will consolidate its Southern Hemisphere operations in Tasmania, while the New Zealand government has been accused of failing its manufacturing sector.

The decision will see the paper manufacturer invest heavily in Australia and downsize New Zealand operations with the closure of 150,000 tonnes of capacity at the Tasman mill in New Zealand

‘There are calls for the Government to do more to help the manufacturing sector after the Australian government helped Norske Skog upgrade a paper mill in Tasmania at the same time as company cut backs in New Zealand could cost 100 jobs,’ reported

The project will see AUD 84 million invested at Norske Skog’s Boyer Mill in Tasmania over the next two years to enable the production of coated grades among other things suitable for catalogues. The Australian Federal Government will contribute AUD 28 million in grants to help fund the project, while the Tasmanian State Government is providing an AUD 13 million loan. Completion is targeted for the first quarter of 2014.


“We are committed to the future in Australia, and we therefore invest AUD 84 million. With substantial funding support from the Australian government, we strengthen the operations at Boyer. This will create future growth opportunities for the Norske Skog group”, said Norske Skog President and CEO Sven Ombudstvedt.

Ms Giddings said a key role of government is to work with major companies to protect jobs and secure ongoing investment

“This is fantastic news for Tasmania and the people of New Norfolk who rely on the operation for jobs and economic activity,” Ms Giddings.

“Norske Skog is an important part of the Tasmanian economy and this investment will ensure that it remains so for many years to come,” Ms Giddings said.

The final costs of the restructuring will be determined once the consultation process at the Tasman mill is completed.