Paper manufacturer Norske Skog has entered into separate new long-term supply agreements with Fairfax Media and News Corp Australia in a vote of confidence in print.
Both News and Fairfax had existing supply agreements with Norske Skog that were due to expire in June 2015. Those have now been replaced by new deals that will run until mid-2020.
The update has been billed by Norske Skog CEO Sven Ombudstvedt as a very important agreement for the paper group, allowing it “the opportunity to co-operate closely with these customers, and . . . intensify the effort to reduce costs in the value chain”.
Regional President of Norske Skog Australia Andrew Leighton said Norske Skog worked separately with both publishers to develop the agreements, worth a combined total of NOK 9 billion (AU$1.7 billion),
News and Fairfax are the company’s largest customers in Australasia, making up around 70 per cent of the region’s newsprint and improved grade market.
The new agreements amount to a significant share of the 700,000 tonne total production capacity of the region’s three Norske Skog mills, Albury, Boyer and Tasman.
For more news from The Newspaper Works click here