Norske Skog and Rotocart form tissue JV at Bruck mill

Thursday, Jul 16, 2015

Total costs for tissue conversion production amounts to €80m, according to Norske Skog. JV structure expected to limit market risks and CAPEX.

Norske Skog is entering the tissue market in Europe. The company has formed a joint-venture with Italy's sanitary and household paper manufacturer Rotocart and will convert the 130,000 tpy newsprint PM 3 at the Bruck mill in Austria to tissue production. According to Norske Skog, the JV structure will limit the market risks and capital expenditure for the project.

Since last year, Norske Skog has had the green light from the Department of Environment and Land Planning in the Austrian state of Styria to build a production plant for tissue paper at the Bruck mill with a capacity of 69,000 tpy. The company puts the total cost for the tissue conversion project at €80m.

Norske Skog also runs a 275,000 tpy LWC paper machine at the Bruck site. The PM 4, however, is not part of the company's strategic review and tissue conversion project in Austria.

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