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

 

Finance: Major Campaign To End "Gross Overtaxation Of Savings"

The campaign – which includes a special web site through which New Zealanders can e-mail their own and other MPs and party leaders – is backed by Age Concern, Consumer NZ, the Financial Services Council and the Taxpayers’ Union. More>>

ALSO:

Scoop Business: Leighton-Led WGP To Build, Manage Transmission Gully

The Wellington Gateway Partnership, led by a unit of ASX-listed Leighton Holdings, has won the $1 billion contract to build the Transmission Gully road north of Wellington. More>>

ALSO:

Gareth Morgan: The Government’s Fresh Water Policy – Revisited

Fresh water quality is the latest area to be in the sights of Gareth Morgan and his research organisation The Morgan Foundation... They found that the fresh water policy was a bit murkier than the Environment Minister let on. More>>

ALSO:

Interest Rates: RBNZ Hikes OCR To 3.5%, ‘Period Of Assessment’ Now Needed

Reserve Bank governor Graeme Wheeler raised the official cash rate as expected, while signalling a pause in rate hikes to assess the impact of moves so far this year. The kiwi dollar sank after Wheeler said its strength was “unjustified” and that the currency could have “a significant fall.” More>>

ALSO:

Fonterra: Canpac Site 'Resize' To Focus More On Paediatrics

Fonterra is looking at realigning its packing operations at Canpac, in the Waikato, to focus more on paediatric nutritionals... The proposed changes could mean around 110 roles may not be required at the site which currently employs 330. More>>

ALSO:

Scoop Business: Postie Plus Brand Gets 2nd Chance With Well-Funded Pepkor

The Postie Plus brand is getting a new lease of life after South Africa’s Pepkor bought the failed retailer’s assets out of administration and said it will use its purchasing power to reduce costs of stock and fatten margins. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news