Norske Skog Pisa sells remaining for company

Norske Skog has definitely left the Brazil and Latin America. Last week, the company sold its remaining stake of 49% in newsprint mill Pisa for $ 37 million to Chile's Bío Bío Papeles. Pisa mill was built in 1984 in the city of Jaguariaíva, State of Paraná, and is the only newsprint producer in Brazil, with capacity to produce 180 thousand tons/year of newsprint.
According to the General Manager of the Bío Bío Papeles, Glen Rybertt, the acquisition is a great opportunity for the company to grow in the newsprint market. "Brazil is the main consumer market of Latin America, but has a low per capita paper consumption. Demand may increase even with the penetration of digital media, "said Rybertt, adding that Pisa is the only newsprint producer in a country that consumes 500 thousand tons/yr of this item.
Norske Skog, one of the largest producers of newsprint in the world, with more than 2.5 million tons per year capacity, acquired the operation of Pisa from Fletcher Challenge in 2002, but faced problems with tight operating margins over the years. According to the company, the group now intends to have its core business in Europe and Australia. "The sale is also part of our strategy to improve our liquidity," explained the CEO Sven Ombudstvedt, Norske Skog.
In June 2013, Norske sold 51% of the factory of Pisa to Bío Bío Papers, you should acquire the remainder of the shares within one to two years. "These terms have been renegotiated and include a fast-track schedule for the sale of the 49% stake. This was made possible due to a Brazilian tax refinancing program (REFIS), which was released by the Brazilian authorities in the second half of 2013 and in Pisa who participated, "Ombudstvedt said.
Rybertt confirmed that all producers of mechanical pulp based paper has adjusted the margins and low profitability. "But Norske Skog Pisa and executives put in excellent work to streamline the company and improve its competitiveness. We hope to follow the same path. "
According to him, Bío Bío Papeles is making efforts to increase production with limited investment. "There is no room to increase production of 10,000-15,000 tons, compared to the production of 2013", he commented.