The Norwegian government is chipping in with NOK7 million (A$1.29 million) to help Norske Skog develop better paper technology.

Innovation Norway will help Norske Skog Saugbrugs establish a pilot plant to develop microfibrillated cellulose (MFC) also known as nanocellulose. Applications include its use as a new raw material in paper production and as a possible reinforcement of plastic.
 

President Sven Ombudstvedt says if successful, the technology could reduce paper production costs and “will be useful for the entire group”.

The plant will be one of the largest in the world, and is expected to give Norske Skog unique knowledge of how MFC can be exploited on a large scale.

The pilot project involves production of MFC from thermomechanical pulp, the main raw material for paper, and is budgeted at NOK 14 million.

• Rune Sollie (47) has been named as chief financial officer of Norske Skogindustrier ASA. He was most recently chief group accountant of Statoil Fuel & Retail.

• Norske Skog says it has agreed to sell the remaining 49 per cent of Norske Skog Pisa in Brazil to Papeles Bio Bio (formerly Norske Skog Bio Bio), controlled by a consortium of Chilean investors. The US$37 million proceeds will be received during the first half of 2014.

Following the transaction, Norske Skog will no longer have paper production in South America.