Norske Skog has approved an investment of up to approximately NOK 850 million to rebuild paper machine 6 (PM6) at its Saugbrugs mill in Halden, Norway, enabling flexible production of either thermomechanical pulp (TMP)-based kraftliner or supercalendered (SC) magazine paper.
PM6 has been out of production since a rockslide at the site in April 2023. Since then, Saugbrugs has continued serving the SC magazine paper market with PM4 and PM5 while evaluating options for the site’s future development.
The rebuilt PM6 will have annual production capacity of up to approximately 300,000 tonnes of TMP-based kraftliner or approximately 230,000 tonnes of SC magazine paper.
Norske Skog expects the rebuilt machine to operate at a materially lower cost than PM4 and PM5, citing more efficient energy consumption, a streamlined production process and reduced staffing requirements.
Following the start-up of PM6, production on PM4 and PM5 is planned to cease permanently. Norske Skog said the transition is expected to take place without interrupting customer deliveries.
Expanding Into Packaging
The investment will broaden Saugbrugs’ product mix beyond publication paper while maintaining its position in the SC magazine paper market.
The new TMP-based kraftliner will be produced from virgin fibre and will particularly target lower grammages. Norske Skog said the product is intended for applications requiring strong, lightweight packaging with good printability, a low fossil carbon footprint and suitability for food contact.
The project also expands the group’s exposure to fibre-based packaging, complementing its existing production of testliner and fluting.
CEO Geir Drangsland said the flexible PM6 configuration is expected to improve Saugbrugs’ cost position while allowing the mill to adapt production to future market developments.
Start-Up Planned for 2028
Detailed engineering and preparatory work will proceed alongside measures to finance the investment. These include a planned sale and leaseback of the PM6 building and property, as well as a potential sale of the Saugbrugs administration office.
Start-up of the rebuilt PM6 is expected during the first half of 2028.
In parallel, Norske Skog Saugbrugs will continue evaluating the potential development of an 80–100 MW data centre on available parts of the site. If developed, the data centre would operate alongside continued fibre-processing activities.
