Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tasman Mill still not making money for Norway’s Norske Skog

Tasman Mill still not making money for Norway’s Norske Skog

By Pam Graham

July 10 (BusinessDesk) –Norway’s Norske Skog is making a loss on lower revenue from its New Zealand newsprint business after closing a paper machine at its Tasman Mill, and the large industrial user doesn’t like the cost of electricity here.

Norkse Skog Tasman reported revenue of $140.65 million in the year ended Dec. 31, 2013, down from $238.1 million in 2012, according to accounts filed to the Companies Office. The company made an operating loss before financing costs of $66.65 million in 2013, reduced from a loss of $349.26 million in 2012 when it booked a $221 million impairment charge on fixed assets.

Gross profit, which just takes into account cost of sales, was $61.62 million in 2013, down from $100 million in 2012. The bottom line loss of $83 million was reduced from a loss of $249.87 million in 2012.

The company closed a 50-year-old paper machine at its Tasman Mill at Kawerau on Jan. 9, 2013, removing160,000 tonnes of newsprint capacity from the Asian export market. The one remaining machine produces newsprint predominantly for the New Zealand and Australian markets.

The parent’s annual report in 2013 reveals the world’s second-largest newsprint maker had issues with the cost of electricity in New Zealand in that year. In March 2013 it decided to reduce production “due to the energy price development in New Zealand”, according to the annual report. The company also noted high electricity price in New Zealand in its first quarter accounts and is due to report second quarter accounts on July 17.

The Norske Skog Tasman accounts filed in New Zealand show most of a $17.75 million provision for restructuring was used in 2013 but $17.5 million of a $28.75 million provision for rehabilitation still had to be used. About 110 jobs went in Kawerau when the paper machine closed and the accounts show redundancy costs of $1.2 million in 2013.

Still, the news is not all bleak for the mill selling to the declining newsprint industry. The parent’s annual report notes Tasman’s work on making biofuel from sawdust with Z Energy as an example of creative ideas being pursued by the group.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Cosmetics & Pollution: Proposal To Ban Microbeads

Cosmetic products containing microbeads will be banned under a proposal announced by the Minister for the Environment today. Marine scientists have been advocating for a ban on the microplastics, which have been found to quickly enter waterways and harm marine life. More>>

ALSO:

NIWA: 2016 New Zealand’s Warmest Year On Record

Annual temperatures were above average (0.51°C to 1.20°C above the annual average) throughout the country, with very few locations observing near average temperatures (within 0.5°C of the annual average) or lower. The year 2016 was the warmest on record for New Zealand, based on NIWA’s seven-station series which begins in 1909. More>>

ALSO:

Farewell 2016: NZ Economy Flies Through 2016's Political Curveballs

Dec. 23 (BusinessDesk) - New Zealand's economy batted away some curly political curveballs of 2016 to end the year on a high note, with its twin planks of a booming construction sector and rampant tourism soon to be joined by a resurgent dairy industry. More>>

ALSO:


NZ Economy: More Growth Than Expected In 3rd Qtr

Dec. 22 (BusinessDesk) - New Zealand's economy grew at a faster pace than expected in the September quarter as a booming construction sector continued to underpin activity, spilling over into related building services, and was bolstered by tourism and transport ... More>>

  • NZ Govt - Solid growth for NZ despite fragile world economy
  • NZ Council of Trade Unions - Government needs to ensure economy raises living standards
  • KiwiRail Goes Deisel: Cans electric trains on partially electrified North Island trunkline

    Dec. 21 (BusinessDesk) – KiwiRail, the state-owned rail and freight operator, said a small fleet of electric trains on New Zealand’s North Island would be phased out over the next two years and replaced with diesel locomotives. More>>

  • KiwiRail - KiwiRail announces fleet decision on North Island line
  • Greens - Ditching electric trains massive step backwards
  • Labour - Bill English turns ‘Think Big’ into ‘Think Backwards’
  • First Union - Train drivers condemn KiwiRail’s return to “dirty diesel”
  • NZ First - KiwiRail Going Backwards for Xmas
  • NIWA: The Year's Top Science Findings

    Since 1972 NIWA has operated a Clean Air Monitoring Station at Baring Head, near Wellington... In June, Baring Head’s carbon dioxide readings officially passed 400 parts per million (ppm), a level last reached more than three million years ago. More>>

    ALSO:

    Get More From Scoop

     
     
     
     
     
     
     
     
    Business
    Search Scoop  
     
     
    Powered by Vodafone
    NZ independent news