Norske Skog is talking to work councils about a deal to sell its Parenco mill and Reparco Group recovered paper business in the Netherlands.

The company says if an agreement with the potential buyer is reached, the mill will be converted out of publication paper after 2012.

Negotiations have reached a stage at which Norske Skog has filed a request with the work councils for advice on the proposed transaction.

Norske Skog says it will provide more information when a transaction is presented to and approved by all the relevant governing bodies of the two parties. Parenco has a total publication paper capacity of 265 000 tonnes.