Norske Skog is selling its Derwent Valley Boyer mill to Boyer Capital, a company led by developer David Marriner, in a $27 million deal.
The transaction, expected to be finalised in the first quarter of this year, marks Norske Skog’s exit from the Australasian market after 25 years.
The mill produces 150,000 tonnes of newsprint and 135,000 tonnes of LWC magazine paper annually. It employs around 300 people.
Norske Skog CEO Geir Drangsland said the sale will allow the company to focus on its four European mills, including Golbey in France and Saugbrugs in Norway.
“The discussions with David Marriner and Boyer Capital have been ongoing for some time and we believe they represent the ideal owner to both continue the production of publication paper and develop the industrial site for future activities,” he said.
Marriner sees strong potential to “expand and diversify” industrial activities at the mill.
“In dialogue with mill management and representatives of the Boyer workforce we have been very impressed with their knowledge and commitment to the business,” he said.
“We are therefore excited to start a new chapter for the mill.”
Resources Minister Eric Abetz said the sale secures its long-term future as Australia’s only paper manufacturing plant.
“This is a massive vote of confidence in Tasmania’s manufacturing sector and the broader economy,” he said.
“We look forward to seeing Boyer Capital Pty Ltd build on the mill’s strong foundations, exploring opportunities for diversification and expansion that will bring even more jobs and investment to Tasmania.”
