Norske Skog will initiate a main study aiming to enter the bleached
chemi-thermomechanical pulp (BCTMP) market by starting production at Norske Skog
Saugbrugs in Halden. The rockslide at Saugbrugs in April 2023 causing heavy
damages on the PM6 machine, released available termo-mechinalcal pulp capacity
that can be utilised to produce BCTMP (bleached chemi-thermomechanical pulp) at
Norske Skog Saugbrugs. Part of the investment will be covered by the portion of
the insurance settlement that has not yet been paid out by the insurance
company, amounting to NOK 615 million, for the development of new activities at
the plant.

The new BCTMP line will produce approximately 300,000 tons of competitive pulp
to meet the growing demand, especially for products in the packaging market.
Saugbrugs has adequate access to green energy, and thus continue to deliver
products with very low carbon footprint. Norske Skog Saugbrugs will continue to
be a reliable supplier of SC-publication paper also after the start of BCTMP
production.

"Norske Skog will initiate a main study that will form the basis for a final
board decision to build a BCTMP-plant at Saugbrugs in Halden. The net investment
in BCTMP production will range between NOK 1.5 to 2 billion (EUR 140-180
million). The construction period is expected to last for two years starting in
the second half of 2025. We expect to achieve a return on net investment of more
than 20%. This will be the first significant investment at Saugbrugs outside of
publication paper in modern times," says Norske Skog's CEO Geir Drangsland.

These investments represent the latest initiative in enhancing the circular and
industrial ecosystems at the Saugbrugs mill. The BCTMP production will be based
on fresh fibre, and the mill has already access to adequate energy capacity.
Norske Skog Saugbrugs investment will exploit existing machinery, equipments and
infrastructure