Almost a month after their Norwegian parent company filed for bankruptcy, Albury’s Norkse Skog mill remains unaffected by the change.
Albury mill general manager and vice president of paper operations Milo Foster said the Ettamogah plant had not been impacted by the bankruptcy and no jobs had been lost as a result of the December bankruptcy filing in Norway.
He said new owners were being sought for Norkse Skog’s Norway-based parent company Norske Skogindustrier ASA, but there was no reason to suspect the Albury mill would be affected by the change.
On December 19, Norske Skogindustrier ASA declared bankruptcy and the non-listed Norske Skog AS was named the new operating parent company of Norske Skog.
At the time, chairman of the now defunct Norske Skogindustrier ASA, Christen Sveaas, said it was a disappointing but unanimous decision that should not affect mill operations.
Mr Foster said that prediction had rung true, with no changes occurring in Albury as a result of the Norwegian bankruptcy.
“All the operating units, that’s three mills in Australasia and four European mills, continue to operate,” he said.
“There’s nothing out of the ordinary going on with operating unit, the bankruptcy filed was for the corporate unit in Norway.”
Mr Foster said the company was working through the processes of finding new owners.
“The secured debt holders that are in control of the company now are still moving ahead, basically they have started the auction process and all potential bidders are required to have bids in by the end of February,” he said.
Mr Foster said with a new company owner changes would likely occur but there was nothing to indicate the Albury mill would be negatively affected.
“There’s no reason to think anything will change in terms of how we operate in the short-term,” he said.
“Whoever is interested in purchasing the company will undoubtedly make changes but all units have been operating as they do and there’s every reason to believe they will continue to do so.”