Norske Skog hikes export prices to Asia
Paper manufacturer Norske Skog is increasing prices on all exports from its mills in Australia and New Zealand to Asian markets.
The increase is necessary to address higher production and shipping costs, which has led to unsustainably low pricing in these markets, said the company is a brief statement.
The price increase will be in the range of 5-10%, depending on the underlying cost increase applying to the relevant market and customer, and will take effect from 1 April 2017.
The Norwegian-based company, a global leader in production of newsprint and magazine paper, has two mills in Australia – at Boyer in Tasmania and Albury in NSW – and operates the Tasman mill at Kawerau in New Zealand.
In July 2016, Norske Skog reported that demand for newsprint in Australia had fallen by nine percent in the first five months of the year while demand for magazine paper was stable. The company said its Australasian business posted a decrease in revenue compared to the previous quarter due to the stronger krone and lower sales volume.
Norske Skog is one of the world’s largest producer of publication paper, with eight wholly and partly-owned mills and sales offices and agents on five continents.