Norske Skog launches containerboard production at Golbey mill in France

FRANCE – Norwegian pulp and paper company Norske Skog has officially commenced recycled containerboard production at its Golbey mill in northeastern France, marking a major milestone in its strategic shift toward sustainable packaging.

The move follows an investment of approximately €400 million (US$453.1 million) aimed at transforming the facility into a key hub for containerboard production in Europe.

The newly installed containerboard machine will add 550,000 tonnes of production capacity annually, increasing the group’s total containerboard capacity to 760,000 tonnes.

Shipments to customers are scheduled to begin in the second quarter (Q2) of 2025. By the end of 2025, Norske Skog expects the Golbey mill to operate at 50%–60% capacity utilization, ramping up to full capacity—approximately 95%—by the first half (H1) of 2027.

Crucially, the production line will rely exclusively on recycled paper, aligning with the company’s long-term sustainability objectives.

In addition to containerboard, the Golbey site will continue producing 330,000 tonnes of newsprint annually, maintaining its importance in the publication paper market.

“This start-up of the world-class containerboard machine at Golbey is a significant milestone for Norske Skog and for everyone working at the mill,” said CEO Geir Drangsland.

“The containerboard business will become a strong contributor to Norske Skog’s operations, while we continue to supply high-quality publication paper products.”

Beyond production, the mill is expected to make a broad environmental and economic impact. It will recycle over one million tonnes of locally collected wastepaper each year, significantly contributing to circular economy goals.

Moreover, Norske Skog is expanding its partnership with Green Valley Energie, a move that allows the mill to supply waste material for the production of green, cost-effective energy.

This energy will be used both in Golbey’s production processes and sold externally, further enhancing the facility’s sustainability and cost-efficiency.

The expansion is also expected to generate long-term employment and stimulate regional industrial activity.

At full operation, the mill could generate annual revenues of approximately Nkr5 billion by 2027–2028, assuming stable market prices.

To support this transformation, Norske Skog secured a Nkr500 million green loan from DNB Bank in September 2024.

The funds are earmarked for environmentally focused projects, including emission reductions through a new thermo-mechanical pulp line and the procurement of certified wood fibre.

This move is part of the company’s broader financial strategy to allocate more of its debt at the subsidiary level and free up operational cash flow.

With Golbey now positioned as one of the most significant paper and packaging facilities in Europe, Norske Skog is reaffirming its role as a leader in sustainable fibre-based materials.

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