Oji Fibre Solutions Media Statement 10 October 2023

Oji Purchases Some Norske Skog Assets in Kawerau

Oji Fibre Solutions (OjiFS) says it is pleased to be taking over some assets left over by Norske Skog after they closed the Kawerau newsprint mill in 2021. Chief Executive Jon Ryder said, “This is good news because it allows us to retain essential equipment and services for our Tasman pulp mill, near Kawerau.”  

The deal for OjiFS to purchase certain Norske Skog land, buildings and other assets in Kawerau was approved by the Overseas Investment Office on 20 September, enabling OjiFS to take over the land and assets on 10 October 2023.  

The two mills were once part of an integrated facility, so while much of the important electricity equipment, piping, water intake and treatment facilities and other infrastructure is owned by Norske Skog, the use of these assets is also critical to OjiFS.  These assets cannot be easily separated or replaced, so the best course for OjiFS was to purchase the relevant land and infrastructure. 

“We have focussed on purchasing what we need to operate the pulp mill and secure our future on the site”. said Dr Ryder.

In addition to purchasing relevant land and assets, OjiFS will lease the existing wastewater treatment ponds from Norske Skog and takeover their operation to continue to treat wastewater from the pulp mill and other facilities at Kawerau.  This means it will also take full responsibility for the consent to discharge water into the Tarawera River. 

OjiFS has not purchased land containing industrial landfills to the north of the mill.  This land will remain in Norske Skog ownership unless it is sold to another entity. Dr Ryder indicated that OjiFS has never used these landfills and responsibility for their closure is with Norske Skog and Carter Holt Harvey, a previous user. “We will, however, continue to keep a close eye on landfill closures because our name remains on the relevant landfill consent for now” he said. 

Under the approved deal, OjiFS will surrender its share of the landfill consent when Norske Skog completes the closures.  

“We have been working on this purchase for three years.  Many people have worked hard and shown a lot of patience, including our friends at Norske, so I am very pleased to be at this point” he said.   

ENDS
 
Background Information

Who is Oji Fibre Solutions? 

Oji Fibre Solutions (OjiFS) is one of Australasia’s leading pulp, paper and packaging manufacturers, and is owned by Oji Holdings Corporation. Most of Oji Fibre Solutions’ operations are based in New Zealand. It employs over 1800 people in New Zealand and Australia. 

Market pulp and containerboard products are produced in the Central North Island of New Zealand and at a recycling mill in Auckland. There are also nine packaging operations in New Zealand and Australia that produce a range of wood-fibre based packaging solutions, principally for the horticulture, dairy, meat and beverage industries. 

The business includes Fullcircle, the only integrated waste-paper recovery and recycling service transforming wastepaper into paper board and packaging products in New Zealand. 

Market pulps and containerboard are exported to more than 30 international markets via our logistics operations, Lodestar, while most of the packaging products are sold to domestic customers in Australia and New Zealand. 

Oji Holdings Corporation, based in Japan, is one of the largest companies in the global forest, paper and packaging sector. Its operations in New Zealand now include Pan Pac, based in Hawkes Bay, Southland Plantation Forest Company of New Zealand and Oji Fibre Solutions.

For more information go to www.ojifs.com

For enquiries please contact: 
Philip Millichamp +64 027 503 3569 
philip.millichamp@ojifs.com