Internal restructuring
Location of affected unit(s)
Manufacture Of Wood And Paper Materials
Manufacture Of Paper And Paper Products
17.12 - Manufacture of paper and paperboard

500 - 600 jobs
Number of planned job losses
Job loss
Announcement Date
4 March 2008
Employment effect (start)
1 July 2008
Foreseen end date


The Norwegian based group Norske Skog, a global manufacturer of lightweight, coated and uncoated newsprint and magazine paper, has announced that it is to cut 500 to 600 jobs world-wide. It is estimated that at the Czech and the Korean mills around 400 workers will lose their jobs altogether, while around 130 will be made redundant at the Norwegian mill at Follum. As of March 2008, there is no information on when the job losses will be implemented by. Norske Skog has currently 18 paper mills around the world employing 8000 workers.

An increasingly weak market has resulted in temporary production shutdowns at several Norske Skog mills in recent years. At the same time, the continued excess capacity has resulted in a weak price trend for the company's products. On 12 March the corporate assembly sanctioned the Board recommendation of 4 March to shut down a total newsprint production capacity of 450,000 tonnes. This amounts to about seven per cent of the company's total global production capacity, and includes the following mills/paper machines: Permanent shutdown of Norske Skog Steti (Czekhia), indefinite shutdown of PM2 at Norske Skog Follum (Norway), and indefinite shutdown of Norske Skog Cheongwon (Korea). The timing of the individual shutdowns will be decided later by the board.

The Norwegian unions protested against the decision to close Follum. Instead they suggested altering the production to other sorts of paper, for example booking paper. At the meeting of the corporate assembly around 100 workers participated in a demonstration, but they only managed to get support from one of the stock holders representatives in addition to the 6 employee representatives.

After the meeting the union leader Stein-Roar Eriksen said to the media that the management and the coroprate assembly had deceived Follum. He also said that the union had to rethink what to do next, and that there has to be changes in the management, board and coroporate assembly.


  • 12 March 2008: Nationen
  • 12 March 2008: Magasinet for fagorganiserte
  • 12 March 2008: Printweek
  • 13 March 2008: Aftenposten


Eurofound (2008), Norske Skog, Internal restructuring in World, factsheet number 66459, European Restructuring Monitor. Dublin, https://restructuringeventsprod.azurewebsites.net/restructuring-events/detail/66459.