Norske Skog mill conversion project is behind schedule

A paper machine conversion project in France announced in 2021 by Norway-based Norske Skog has been met with delays and now is expected to start during the first quarter of 2025.

When the Norske Skog Golbey conversion project was announced more than four years ago, the company anticipated a 2023 startup, after which the Golbey mill would have 555,000 metric tons of containerboard capacity and 330,000 metric tons of newsprint capacity.

The containerboard machine’s startup subsequently was pushed back to late 2024 before the new 2025 target date was announced this month.

“Work relating to piping and electrical cabling has taken longer than planned,” Norske Skog says. “Commissioning of roll warehouse, containerboard winder and the effluent station is ongoing [and] precommissioning (I/O check) has started for the old corrugated containers (OCC) drum pulper, [which] will start in early October.”

The delays could have been a contributing factor in the rising cost of the project, having gone up from its initial 300 million euros ($333.5 million) estimate to 320 million euros ($355.7 million).

“Completion of the containerboard project at Golbey remains a top priority across the Norske Skog group and for me personally,” Norske Skog CEO Geir Drangsland says. “We will do our utmost to complete the project within the updated time frame and budget, and look forward to start customer deliveries.

"This project has provided us with important lessons that will be implemented in the BCTMP [bleached chemi-thermomechanical pulp] project at Saugbrugs."

Norske Skog also provided an update on its Saugbrugs magazine paper mill in Norway. That facility’s paper machine No. 6 (PM6) has been idled since last April, when a rockslide hit the building and machinery within. Saugbrugs PM5 was restarted in November 2023, and the company continues to consider its options for PM6.

The company says BCTMP production in Saugbrugs has commenced with support from engineering consultants and vendor dialogues, and a final investment decision is still expected during the first half of 2025.