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Sunday, September 9, 2012

Massive boost for Boyer

PAPERMAKER Norske Skog has today announced an $84 million investment at its Boyer mill near New Norfolk. The company will convert a machine at Boyer mill to the production of coated grades of paper with the support of the state and federal governments.

"We are committed to the future in Australia, and we therefore invest AUD 84 million. With substantial funding support from the Australian government, we strengthen the operations at Boyer. This will create future growth opportunities for the Norske Skog group," Norske Skog president and CEO Sven Ombudstvedt said today.

The machine conversion project will take place over the next two years to enable the production of coated paper suitable for catalogues among other things.

The company said the Federal Government would contribute $28 million in grants to help fund the project, and the State Government would provide a $13 million loan. Completion is targeted for the first quarter of 2014.

The company also announced the closure of one machine at its Tasman mill in New Zealand due to an oversupply of newsprint in the region.
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