As part of its 2025 annual results, Norske Skog announced that it is examining strategic options for the Saugbrugs mill - including converting the PM6 paper machine to produce TMP-based kraftliner. According to the company, a decision on this is to be made in the second quarter of 2026.
The background to this is the Group's ongoing transformation towards more growth-orientated paper segments. While Norske Skog produced and delivered record quantities of recycled containerboard in 2025, individual sites are still under economic pressure. The possible changeover in Saugbrugs is considered part of the strategic realignment.
Focus on remodelling PM6
A study is currently being carried out at the Saugbrugs site to convert the PM6 paper machine. The aim is to be able to produce TMP-based kraftliner in addition to SC magazine paper in the future. Kraftliner is used as a high-quality top layer for corrugated base paper and is a key raw material for packaging.
With a possible kraftliner production facility, Norske Skog would further strengthen its position in the packaging sector. The Group already has an annual capacity of 0.8 million tonnes of packaging paper at sites in France and Austria. Full capacity utilisation of the new Golbey PM1 containerboard machine is scheduled for the first half of 2027.
Transformation with mixed annual results
In the 2025 financial year, Norske Skog achieved a pre-tax profit of NOK 354 million with EBITDA of NOK 769 million. Sales increased to NOK 10.5 billion. However, start-up costs and export volumes from Golbey had a negative impact on earnings in the fourth quarter, resulting in a pre-tax loss of NOK 256 million.
„We end the year with strong operational momentum and a significantly improved liquidity position. Record corrugated board shipments, increased market share and solid progress on several strategic projects demonstrate the resilience of our organisation and the long-term value of our transformation efforts.“
Geir Drangsland, CEO of Norske Skog
At the same time, the company is pushing ahead with other projects, including the conversion of Skogn for the production of book paper and investments in energy efficiency and carbon capture.
Decision in the second quarter of 2026
The strategic review for Saugbrugs is to be finalised in the second quarter of 2026. In addition to economic conditions, market opportunities in the packaging paper segment will also play a role, it is said. Kraftliner is considered a more stable segment compared to traditional graphic papers, which have been experiencing declining demand for years.
Source: Norske Skog
