Norske Skog declares force majeure in Chile

March 3, 2010 by timbercommunity

All production at Norske Skog Bio Bio mill in Concepción, Chile has stopped after the massive earthquake that registered 8.8 on the Richter scale on 27 February 2010. Based on the preliminary reports on damage to the mill’s site and equipment it will take some time to restart production at the mill. Detailed reports on the condition of the mill are currently not available.

 
Norske Skog is taking all the steps required to try to restart the operations at Norske Skog Bio Bio as soon as possible, also taking into account full safety of the 240 employees at the mill.
As Norske Skog Bio Bio since the massive earthquake on  27 February 2010 is unable to perform any of its obligations due to an impediment beyond its control, and as Norske Skog Bio Bio could not reasonably be expected to have taken into account the impediment and its effects upon its ability to perform at the time of the conclusion of any contract, and as well as that Norske Skog Bio Bio could not reasonably have avoided or overcome the earthquake or its effects, Norske Skog Bio Bio is since 27 February 2010 and until further notice, in a situation of force majeure (“act of God”) with respect both its customers and suppliers.
As a result of the force majeure Norske Skog Bio Bio is until further notice not liable to perform any of its contractual obligations.
Lysaker, Norway 3 March 2010
Norske Skog
Corporate communications