by clicking the arrows at the side of the page, or by using the toolbar.
by clicking anywhere on the page.
by dragging the page around when zoomed in.
by clicking anywhere on the page when zoomed in.
web sites or send emails by clicking on hyperlinks.
Email this page to a friend
Search this issue
Index - jump to page or section
Archive - view past issues
Panpa Bulletin : April 2006
april 2006 PaNPa bUlletiN | 33 restructuring of the Nor- wegian papermaker Norske Skog, which supplies the bulk of Australia and New Zealand's newsprint supplies, is being speeded up following the departure of the company's chief executive, Jan Oksum. Oksum's departure, which came only a month after that of the group's finance direc- tor, has been put down to 'weak results for a long period' -- an outcome partly blamed for 'lower prices' obtained for newsprint in Australia. That position, however, is starting to improve -- although it is not good news for Aus- tralia's major publishers, who have also been hit recently by significant increases in the prices of consumables, includ- ing ink. Under the terms of ten-year contracts that Norske Skog en- tered into with News Limited, Fairfax and West Australian Newspapers that run through to 2010, the cost of newsprint delivered from July 1 will rise by a capped increase of seven per cent. This will hike the price of 45gsm stock, currently $956 per tonne, by about $66 a tonne. This rise follows a small in- crease of 1.2 per cent ($11) last year, prior to which Australian publishers had benefited from three annual decreases of six, four and seven per cent. The prices Norske Skog charge are heavily influenced by North American bench- mark prices, which have risen over the last three years by about 40 per cent. Australia's dollar exchange rate is another key element in establishing the Norske Skog price and, except for a protec- tive capping element cover- ing increases that was built into the contracts, Australia's publishers would be facing in- creases almost double to what is being applied to new finan- cial year deliveries.. Over recent weeks, the Aus- tralian dollar exchange rate has been about three cents lower than it was in the match- ing period a year ago. Internationally, the price of newsprint has been flat since the early part of the decade, when a sharp fall in advertis- ing led publishers to cut pagi- nation. Production has increased in most markets, but production over-capacity and long-term contracts like those agreed in Australia have adversely af- fected the bottom-line for the makers. Demand from Australian publishers, which has been strong, weakened slightly this calendar year. But Norske Skog's Australian management does not expect a severe drop. Computer modeling shows a comparatively stable few years ahead, with some ex- pected mild economic fluctu- tations. "Norske Skog has had weak results for a long period," said company chairman Lars Wil- helm Groeholt, commenting on the overall picture. "To improve earnings and increase the pace of the current restructuring of the company's business, the board believes that Norske Skog would now be best served by a change of chief executive." Groeholt said he wanted to speed up a restructuring which is already in progress. Oksum, who made it clear he did not agree with the board's decision to dismiss him, declined to comment on the state of the company and how it was progressing. He is leaving the company, for which he has worked for since 1979, with a pay-out equivalent to just over Aus $2 million. For its fourth quarter, Nor- ske Skog reported a net loss of 997 million kroner ($200 million), against a net profit of 545 million kroner a year ear- lier ($109 m). The fourth-quarter ac- counts reflect Norske Skog's completion of its takeover of South Korean newsprint mak- ers PanAsia Paper Co by buy- ing the 50 per cent it did not already own. That purchase made Norske Skog, based on the outskirts of Oslo, the world's largest newsprint maker, with mills and about 10,000 employees world-wide, including 1294 in Australia and New Zealand. Last year, Norske Skog con- troversially closed down one of its oldest mills near the Norwe- gian capital, which employed 380 people. Restructure at Norske Skog Jack Beverley looks at the fow effects of the papermaker’s restructure and departure of their chief executive. the cost of newsprint delivered from July 1 will rise by a capped increase of seven per cent. APN News and Media's new state- of-the-art plant at Yandina, where Australia's first MAN Roland Regi- oman press is being installed, is to be serviced by a computer-to-plate system based on two Krause LS Jet 250's provided by Graphic Systems Australasia (GSA). APN has also ordered three Krause LS Jet Eco CtP systems for its print fa- cilities at Bundaberg, Rockhampton and Toowoomba. As well as being responsible for sup- plying and installing the Krause CtP lines, the deal struck by GSA covers the supply of Fujifilm CtP plates and consumables for three years. The latest deal is a rewarding outcome for Intergraphic Print and Pack (IPP), which is GSA's parent company, as IPP is also supplying Yandina's combined MAN Roland Regioman and Uniset pressline. GSA was only set up in early 2003 by IPP as a stand-alone company op- erating exclusively in the pre-press sector. Its establishment was one of the most recent major developments in the graphic arts supply sector, marking the first time in more than two decades that the Fuji agency had changed hands in Australia. Warren Hinder, GSA's newspaper specialist, said the decision by a major regional newspaper group to go with the GSA solution was a major vote of confidence in the company's ability to supply and support CtP packages. "The combination of Krause equip- ment and Fujifilm consumables of- fers a number of advantages in terms of production speed, ease of use and low maintenance." Jeff Green, head of group procure- ment at APN, said the reliability of the Krause and Fujifilm products, allied with the strong local support of GSA, provided an ideal combina- tion for his company. Installation of the Krause CtP lines has already begun and GSA is taking on additional technical staff for the work. The Yandina press is able to deliver 64 pages of back-to-back colour at a top rated speed of 75,000 copies an hour. It has four 4-high towers and four reel stands with inline stitching and trimming. aPn supports new CtP supplier