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Closure of Follum approved

Dec 9 2011  The corporate assembly of Norske Skog has decided to follow the board's recommendation to cease production at Follum paper mill in Norway.

”The corporate assembly has considered the proposal from the board of directors of Norske Skog to permanently close the paper production at Norske Skog Follum. The corporate assembly, which consists of twelve shareholder elected representatives and six employee elected representatives, decided against four votes to support the resolution of the Board,” says Tom Ruud, chair of the corporate assembly of Norske Skog.”This is obviously a difficult matter for the employees and suppliers at Follum, but the decision strengthens the basis for future competitiveness and profitability at Norske Skog's other Norwegian operations. Continued operation of Follum with another owner would make the situation considerably more difficult for our mills in Trøndelag and Østfold,” says Sven Ombudstvedt, CEO of Norske Skog."Norske Skog will assist the Follum employees as much as possible in the coming period. Norske Skog would like to arrange for new activities in cooperation with local authorities and businesses, Ombudstvedt adds.Norske Skog Follum is located in the town of Hønefoss and has 356 employees. The mill produces improved newsprint, magazine paper and book paper. Annual production capacity is 290,000 tons. /AA

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