Newsprint production in Norway and New Zealand is being cut because of reduced demand.

Paper maker Norske Skogs says it will cut production at its Tasman mill by 15,000 tonnes because of energy price developments in New Zealand.

At the Skogn mill in Norway, one paper machine (PM2) is being idled “temporarily” from June. The machine produces 130,000 tonnes of Skogn’s annual capacity of 550,000 tonnes.

President and chief executive Sven Ombudstvedt says the temporary closure in Norway is needed to create a better balance between demand and supply in Europe, and to avoid unprofitable production at Skogn. “Despite years of great efforts by the staff to reduce costs, the decision is unfortunately unavoidable due to factors including the strong Norwegian krone,” he says.

Norske Skog says customers will be served from its other mills and paper machines. “All existing supply commitments will be honoured,” a spokesman says.