Norske Skog has entered into an agreement with Talley’s Group, a New Zealand based dairy, fishing, produce and food company, to sell the Nature’s Flame pellets company for NZD 47.8 million. The transaction is expected to close during the first quarter of 2022.
“Nature’s Flame is a company producing high quality and sustainable energy pellets from wood residues, and thus the sales process generated significant interest. Under Norske Skog’s ownership, they expanded the capacity from producing some 20,000 tonnes when acquired to currently 90,000 tonnes. The company is very pleased that Talley’s has indicated interest to continue the ongoing project to further expand the capacity to 150,000 tonnes.
Following the closure of the Tasman mill in 2021 and the sale of the Nature’s Flame business, the Boyer industrial site at Tasmania is now Norske Skog’s only operational asset in the region. The Boyer industrial site will continue to service the regional publication paper markets and develop its industrial footprint within energy and bioproducts”, says Sven Ombudstvedt, CEO of Norske Skog.
Norske Skog acquired the Nature’s Flame business in 2015 for NZD 6.7 million, and has invested an additional NZD 7.8 million to expand the capacity to 90,000 tonnes. The sale is expected to close during the first quarter of 2022.
Source: Norske Skog