The Norske Skog paper mill in Golbey, in the Vosges region, is still struggling to stabilize production on its PM1 line, which was converted from newsprint to packaging paper in 2025.
In the third quarter of 2026, several incidents disrupted production at the Golbey paper mill, according to the Norwegian paper group Norske Skog: a drought in the region, unplanned maintenance at the wastewater treatment plant, and crushing issues with the presses weighed on the site?s shipment volumes and financial results.
As a result, Golbey?s PM1 produced only 60,000 metric tons of packaging paper in the third quarter, despite having an annual capacity of 550,000 metric tons. It reported a negative EBITDA of 40 million Norwegian kroner (approximately 3.4 million euros).
These results stand in contrast to those at the Austrian plant in Bruck
The difficulties faced by the French paper mill, which employs 370 people, are weighing on Norske Skog?s entire packaging paper business. In the third quarter, shipments in the segment fell to 115,000 metric tons, down from 122,000 metric tons in the previous quarter.
Despite higher selling prices and revenue rising from 516 to 535 million Norwegian kroner (44 to 45.5 million euros), the segment?s EBITDA remained at zero, compared with 1 million Norwegian kroner (85,000 euros) in the second quarter.
This situation stands in contrast to that of the Austrian plant in Bruck, where the PM3 line is operating at full capacity. The Bruck plant shipped 55,000 metric tons in the third quarter, generating positive EBITDA of 40 million Norwegian kroner, which exactly offset Golbey?s operating losses.
Norske Skog expects production conditions at Golbey to improve in the fourth quarter of 2026. However, ramp-up will continue into 2027, when the paper manufacturer expects to reach full capacity on the PM1 line. Improving the operation of this line is among the industrial priorities of the Norwegian paper manufacturer, which has an annual production capacity of 800,000 metric tons of packaging paper spread across its European sites.
Financial results bolstered by a real estate sale
Despite the difficulties encountered in Golbey, Norske Skog reported a significant improvement in its consolidated results for the third quarter. Its EBITDA reached 448 million Norwegian kroner (38.1 million euros), compared with 73 million (6.2 million euros) in the previous quarter.
However, this increase is largely attributable to an extraordinary gain of 338 million kronor (28.8 million euros) from the sale of a parcel of land. Excluding this transaction, EBITDA came in at 110 million (9.4 million euros).
The paper manufacturer, which employs approximately 1,650 workers at four European plants, announced that it will continue its cost-cutting measures and is considering production shutdowns depending on market conditions.
