Norske Skog is to sell its Singburi mill in Thailand.

The Scandinavian newsprint maker says it will receive US$33 million total from a Thai industrial group in a transaction part of an “already communicated strategy” to improve its financial position.

The new owner plans to continue producing newsprint at the mill.

“The divestment is part of our strategy to improve Norske Skog's cash flow and financial position,” president and chief executive Sven Ombudstvedt says. “We are very pleased to be able to sell the operations in Thailand to a buyer with long-term plans for the mill.”

The Singburi mill has a total newsprint production of approximately 125,000 tons, and is the sole producer of newsprint in Thailand. The mill has 239 employees.

Norske Skog says the transaction will have “limited operational impact’ on the rest of the group. The financial and operational closing of the transaction is expected to take place in fourth quarter of 2013 and will deliver a “small financial gain”. Final accounting effects will be disclosed in the 2013 fourth quarter financial statements.