Reference is made to the stock exchange release dated 9 October 2020 regarding a
strategic review of the Tasman mill in New Zealand. Norske Skog today announces
the closure of the Tasman mill in New Zealand and a sales process for the mill's
assets. Production will cease by 30 June 2021, permanently reducing Norske
Skog's newsprint capacity by approximately 150,000 tonnes. 

Since the initiation of the strategic review process in New Zealand in October
2020, a process made necessary by the secular decline of the publication paper
industry and the impact of COVID-19, Norske Skog has explored a range of
alternatives for the Tasman mill. Following a careful review, this process has
resulted in a decision to close the Tasman mill and a sale of the mill's assets.
Production will cease by 30 June 2021, reducing Norske Skog's newsprint capacity
by approximately 150,000 tonnes per annum. The Tasman mill has only produced
very limited volumes during 2021. Norske Skog will honour all redundancy and
contractual obligations to the mill's approximately 160 employees as the
workforce is progressively reduced  during the third quarter.

- The decision to close the Tasman mill follows a detailed review over the past
eight months. It will address the substantial imbalance between newsprint
production capacity and customer demand in the Australasian region. The Tasman
mill has been an important contributor to the regional economy in New Zealand
for the past 66 years, producing more than 15 million tonnes of publication
paper over its lifetime. I would like to thank everyone who has worked at the
mill for their outstanding contribution throughout the years, and their
significant efforts to ensure a long and good life for the mill, says Sven
Ombudstvedt, CEO of Norske Skog.

Norske Skog's second quarter financial accounts are expected to be impacted by
recognition of restructuring costs of appoximately NZD 40 million, mainly
related to employee redundancy and site closure costs. In addition, a non-cash
loss of approximately NZD 15 million will be recognised in the second quarter,
relating to the New Zealand energy contracts that have been recognised at fair
value. The sale process for the mill's assets is currently being finalised, and
announcements will be made when definitive transactions have been agreed. Mill
asset sales are expected to be completed during the second half of 2021, with
gross proceeds and working capital release expected to amount to approximatley
NZD 60 million. In summary, a net positive cash effect of approximately NZD 20
million is expected once everything is settled. 

The Norske Skog Boyer mill will be the last domestic Australasian publication
paper producer with a capacity of 150,000 tonnes newsprint and 135,000 tonnes
LWC magazine paper. The Boyer mill will continue to serve the Australasian
publication paper market under long-term contracts.

Norske Skog will continue to operate the 90,000 tonnes Nature's Flame wood
pellets business in New Zealand. The pellets production will continue unaffected
by the closure of the Tasman mill. The ongoing green shift in New Zealand
industrial energy consumption provides a strong long term outlook for the
Nature's Flame business. Nature's Flame was among the winners of the prestigious
New Zealand's Energy Excellence Awards in early May for low carbon energy
contributions. Norske Skog will initiate a process to review the potential for a
further 30,000 tonnes production capacity expansion at the plant, and also
continue the process to explore options for the long term ownership for the
Nature's Flame business.     

About Norske Skog
Norske Skog is a world leading producer of publication paper with strong market
positions and customer relations in Europe and Australasia. The Norske Skog
Group operates four industrial sites in Europe, two of which will produce
recycled containerboard following planned conversion projects. In addition, the
Group operates two industrial sites and a wood pellets plant in Australasia.
Norske Skog aims to further diversify its operations and continue its
transformation into a growing and high-margin business through a range of
promising fibre projects. The Group has approximately 2,300 employees in five
countries, is headquartered in Norway and listed on the Oslo Stock Exchange
under the ticker code NSKOG.

Norske Skog
Communications and Public Affairs

For further information:

Norske Skog media:
Vice President Communication and Public Affairs                                 
                                                               
Carsten Dybevig
Email: Carsten.Dybevig@norskeskog.com
Mob: +47 917 63 117
Twitter: @Norske_Skog

Norske Skog financial markets:                                                  
                                              
Investor Relation Manager
Even Lund
Email: Even.Lund@norskeskog.com
Mob: +47 906 12 919