Norske Skog has entered into agreement with Boyer Capital Pty Ltd, to sell the Boyer mill at an enterprise value of approximately NOK 190 million ($16.9 million). The transaction is expected to be completed during the Q1 2025.

“We are very pleased to conclude our orderly exit from Australasia with the divestment of the Boyer mill. The discussions with David Marriner and Boyer Capital have been ongoing for some time and we believe they represent the ideal owner to both continue the production of publication paper and develop the industrial site for future activities. Norske Skog will now focus fully on the successful ramp-up of containerboard production at the Golbey mill and completing the BCTMP study at the Saugbrugs mill,”said Geir Drangsland, CEO of Norske Skog.

The Norske Skog Boyer mill is situated in Tasmania and has a production capacity of 150,000 tonnes of newsprint and 135,000 tonnes of LWC magazine paper. The site has a total area of 565 hectares, offering significant opportunities for future developments, and good access to raw materials and logistics infrastructure. The mill has approximately 300 skilled and experienced employees. The Boyer mill has contributed an annual average of approximately NOK 60 million in EBITDA to Norske Skog in the period from 2022 to 2024.

The transaction is a sale of 100% of the share capital in Norske Skog Industries Australia Limited which is the holding company for all of Norske Skog’s Australasian activities.

Following the sale, Norske Skog will have four mills, all situated in Europe, with a total combined capacity of 760,000 tonnes of containerboard, 840,000 tonnes of newsprint, 200,000 tonnes of SC magazine paper, and 265,000 tonnes of LWC magazine paper.