Norske Skog entered into new long term sales agreements in Australasia
Norske Skog has separately entered into new long-term supply agreements for
newsprint and improved grade paper with the Australian media groups News Limited
and Fairfax Media Limited. Both these customers had existing supply agreements
with Norske Skog that were due to expire in June 2015 that have been replaced by
new agreements that run until the middle of 2020.
Norske Skog has a long history of supplying both News and Fairfax with the
majority of their newsprint and improved grade paper under long term contractual
arrangements. The contracts have delivered benefits to both Norske Skog and it's
customers through security of supply and demand with stable pricing.
- "This is a very important agreement for the Norske Skog group and we are happy
for this confirmation of our position as the preferred supplier of newsprint and
improved grades to the most influential media players in Australasia. These
agreements gives us the opportunity to cooperate closely with these customers;
and thus, intensify the effort to reduce costs in the value chain," says CEO of
Norske Skog, Sven Ombudstvedt.
-"The combined estimated value of the new agreements over their full term is
approximately NOK 9 billion. Norske Skog has worked separately with both News
and Fairfax during 2013 to develop mutually beneficial agreements that secures
Norske Skog's business with News and Fairfax beyond 2015", says Andrew Leighton,
Regional President of Norske Skog Australasia.
- "These agreements are securing our newsprint and improved grade market share
in Australia and New Zealand until 2020. At the same time, these agreements will
also limit our future foreign exchange rate exposure in Australia and New
Zealand", says the CEO of Norske Skog Sven Ombudstvedt.
News Limited and Fairfax Media Limited are Norske Skog's largest customers in
Australasia. In 2013 these customers represented approximately 70% of the
newsprint and improved grade market in Australasia.
Norske Skog has three mills in Australasia, which are Albury, Boyer and Tasman,
with a total production capacity of 700Â 000 tons. The new agreements amount to a
significant share of the mills' annual production capacity.
Oslo, 23 December 2013
Communications and Public Affairs
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Source: Norske Skog via GlobeNewswire