Norske Skog Decides to Sell NZ Wood Pellets Company
Rubber and Wood | 2022-02-03 21:06:36
The deal covers sale of Nature’s Flame pellets company, which Norske Skog had acquired in 2015 for a consideration of approximately NZD 6.7 million.
By Paul Ploumis
SEATTLE (Scrap Monster): Norske Skog announced that it has entered into an agreement with Talley’s Group towards sale of wood pellets company in New Zealand. The transaction is for a consideration of approximately $31.72 million and is expected to close during the initial quarter of 2022.
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The deal covers sale of Nature’s Flame pellets company, which Norske Skog had acquired in 2015 for a consideration of approximately NZD 6.7 million. The company had invested nearly NZD 7.8 million in the business, significantly expanding its capacity to around 90,000 tonnes, from nearly 20,000 tonnes at the time of acquisition.
As of now, Norske Skog has only one operational asset in the region, this being the Boyer industrial estate at Tasmania. It must be noted that the company had announced closure of the Tasman mill last year.
Sven Ombudstvedt, CEO of Norske Skog stated that Talley’s has already indicated interest to continue the ongoing project to further expand the capacity to 150,000 tonnes. This will further strengthen the decarbonisation efforts by the country, by transitioning from fossil coal energy to renewable energy like wood pellets. The Boyer Industrial site will continue to service the regional publication paper markets, he added.
