Norske Skog has signed an energy contract with NTE (Nord-Trøndelag Elektrisitetsverk) for the supply of electricity to the Skogn paper mill.
The new agreement replaces the agreement signed in 2012. The new agreement will, together with an agreement that was signed with Statkraft in 2011, secure Norske Skog Skogn with sufficient energy for the full operation of the plant. For NTE, the agreement represents a predictable supply of renewable energy to one of the company’s most important customers. The agreement is on commercial terms and is valid for 16 months from 1 September 2015. The new agreement with NTE ensures supply of 0.4 TWh per year until 31 December 2016.
- Norske Skog Skogn is important for the Group, for the forest industry in Central Norway and for jobs at Skogn. If we are to be competitive going forward, we must have even lower costs than today. It requires that energy and raw material costs are reduced further. The order situation is somewhat improved over the past few weeks, and can therefore lead to earlier initiation of PM2 than predicted, says CEO Sven Ombudstvedt in Norske Skog.
- NTE is pleased to have an agreement with a key energy-intensive industrial plant in our region. Norske Skog at Skogn is a cornerstone business in Nord-Trondelag with great importance for value creation and employment. The energy agreement also correlates well with our hedging strategy for energy production, says energy director Kenneth Brandsås in NTE.
- Challenging market conditions in the industry requires that the mill must have access to stable and secure energy supply at an acceptable price to maintain operations. The agreement with NTE represents considerable power cost savings, which are necessary to maintain competitiveness at Skogn, says CEO Sven Ombudstvedt Norske Skog.
Norske Skog Skogn employs 350 people. Production started in 1966. The mill produces newsprint, with the United Kingdom as the largest single market. NTE is the leading energy company with 650 employees in the region of Trøndelag.