Mills in Skogn and Halden should maintain full operations “for the time being”, they say.

President and chief executive Sven Ombudstvedt expressed his regret to the 356 workers affected, and to suppliers and the local community.

“Norske Skog sells less paper than before, so unfortunately we no longer need as many mills,” he says.

The recommendation is the result of an extensive process, which has also involved employee representatives, he says. “Despite all efforts, earnings have deteriorated year by year. Small mills are expensive to operate, and Norske Skog has phased out a number of small mills in Norway and overseas over the past five years.”

Follum has the highest costs per tonne, and no justifiable alternatives for its continued operation have been found.

Ombudstvedt says that Norske Skog “has lost billions… and if we do not act now, the entire group and all the jobs will be at risk”.

He says paper prices are still too low compared to the cost of raw materials, and the Norwegian mills suffer from the strength of the krone.

The matter will be discussed at board meetings on December 7-8. The Follum mill, in Hønefoss, Norway, produces 290,000 tonnes of improved newsprint, magazine paper and book paper a year.