DOCSLIB.ORG

Annual Report 2012

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Annual Report 2012 SUMMARY AND PRESENTATION ANNUAL REPORT 2012 NORWEGIAN PAPER TRADITION THrougH 5012 YEARS I ANNUAL REPORT I NORSKE SKOG I 1 SUMMARY AND PRESENTATION CONTENTS 3 SUMMARY AND PRESENTATION Key figures 3 Norske Skog 2012 4 Production capacity 5 Sustainable challenges 6 50 years of Norwegian paper tradition 7 Board of Directors 1 2 Corporate Management 1 3 15 CORPORATE SOCIAL RESPONSIBILITY 15 Norske Skog and local communities 1 7 Key figures - employees 2012 1 8 Young readers 20 Paper production 20 Evaluation of our environmental performance 2 1 Joined forces with Bellona 23 Tasman (New Zealand) 23 Sustainable raw materials 24 Energy consumption 26 Norske Skog’s greenhouse gas emissions 27 Our carbon footprint 28 Continuously improving our production processes 29 Water consumption 30 Water profile 3 1 Emissions to air and discharge to water 32 Environment-related investments, operating costs and transport 33 Mill figures 34 Independent auditor’s report 36 Environment and corporate social responsibility reporting 36 38 REPORT OF THE BOARD OF DIRECTORS 38 Organisation 40 44 CONSOLIDATED FINANCIAL STATEMENTS 43 Notes to the consolidated financial statements 48 98 FINANCIAL STATEMENTS 97 Notes to the financial statements 101 Independent auditor’s report 1 1 6 Declaration from the board of directors and CEO 1 1 8 121 CORPORATE GOVERNANCE 120 Shares and share capital 124 127 SUMMARY AND PRESENTATION Key figures related to shares 126 Articles of Association for Norske Skogindustrier ASA 128 Design and layout: artell.no // 07interaktiv.no Print: 07 Aurskog Paper: Norcote Trend 90 g/m2 - Norske Skog Photo: Carsten Dybevig, Norske Skog archive. All images are Norske Skogs property and should not be used for other purposes without the consent of the communication dept. of Norske Skog. 2 I ANNUAL REPORT I NORSKE SKOG KEY FIGURES DEFINITIONS 2012 2011 2010 2009 2008 2007 INCOME STATEMENT Operating revenue 16 592 18 904 18 986 20 362 26 468 27 118 Gross operating earnings 1 1 464 1 515 1 413 2 185 2 723 3 932 Operating earnings -2 684 -2 701 -2 379 -1 325 -1 407 677 Net profit/loss for the year -2 781 -2 545 -2 469 -1 400 -2 765 -683 Earnings per share (NOK) -14.63 -13.36 -12.97 -6.36 -14.33 -3.26 CASH FLOW Net cash flow from operating activities 982 455 397 1 697 1 977 2 166 Net cash flow from investing activities 300 470 415 -587 2 289 -1 644 Cash flow per share (NOK) 5.18 2.40 2.09 8.95 10.43 11.43 OPERATING MARGIN AND PROFITABILITY (%) Gross operating margin 2 8.8 8.0 7.4 10.7 10.3 14.5 Return on capital employed 3 4.2 -0.9 -3.1 -1.2 0.3 3.0 Return on equity 4 -47.3 -28.9 -22.2 -10.9 -18.7 -4.0 Return on assets 5 -14.6 -8.7 -7.5 -3.1 -2.8 1.8 PRODUCTION / DELIVERIES / CAPACITY UTILISATION Production (1 000 tonnes) 3 555 3 832 3 998 3 895 5 377 6 049 Deliveries (1 000 tonnes) 3 588 3 857 4 013 3 894 5 412 6 027 Production / capacity (%) 87 87 89 79 93 95 31.12.2012 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007 BALANCE SHEET Non-current assets 11 411 15 803 19 271 23 546 26 980 29 307 Current assets 4 650 6 171 10 027 9 609 18 211 13 953 Total assets 16 061 21 974 29 297 33 155 45 191 43 260 Equity 4 314 7 433 10 183 12 015 13 632 15 957 Net interest-bearing debt 6 6 021 7 863 8 889 9 595 14 047 16 408 Gearing (net interest-bearing debt / equity) 7 1.40 1.06 0.87 0.80 1.05 1.05 OPERATING REVENUE GROSS OPERATING EARNINGS NET INTEREST-BEARING DEBT MNOK MNOK MNOK 30 000 4 000 20 000 3 500 25 000 3 932 27 118 27 3 000 15 000 20 000 468 26 2 500 16 408 2 723 14 047 15 000 20 362 2 000 10 000 18 904 18 986 16 592 1 500 2 185 10 000 9 595 8 889 7 863 1 000 1 515 5000 1 464 1 413 5 000 6 021 500 0 0 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 2007 2008 2009 2010 2011 2012 DEFINITIONS KEY FIGURES 1. Gross operating earnings = Operating earnings + Ordinary depreciation + Restructuring expenses + Other gains and losses + Impairments 2. Gross operating margin = Gross operating earnings : Operating revenue 3. Return on capital employed = Gross operating earnings after depreciation : Capital employed (average) 4. Return on equity = Net profit/loss for the year : Equity (average) 5. Return on total assets = Earnings before financial expenses : Total assets (average) 6. The calculation of net interest-bearing debt is presented in Note 11 in the annual financial statements for the group 7. Gearing = Net interest-bearing debt : Equity 3 I ANNUAL REPORT I NORSKE SKOG SUMMARY AND PRESENTATION NORSKE SKOG 1 JANUARY Norske Skog signed a long-term energy contract with NTE (Nord-Trøndelag Elektrisitetsverk) for the supply of electricity for the paper mill at Skogn. The new agreement, together with an agreement that was signed with Statkraft last year, secures Norske Skog 2012 Skogn sufficient energy for full operation of the mill. 2 3 4 FEBRUARY MARCH APRIL Norske Skog reported improved gross operating The 50th anniversary of Norske Skog was cele- Norske Skog’s annual general meeting elected earnings, partly due to lower costs, for the fourth brated. Norske Skog was established 1 March 1962 Eilif Due, Siri Beate Hatlen, Karen Kvalevåg and quarter 2011. by Norwegian forest owners. Jon-Aksel Torgersen as new members to the board of directors. Eivind Reiten was re-elected as chair Norske Skog reached an agreement to sell back Norske Skog agreed to sell Norske Skog Bio Bio in of the board. The annual general meeting also re- excess power in southern Norway to Statkraft. Chile to Group BO, a consortium of Chilean investors. solved to dissolve the corporate assembly. Norske Skog entered into an agreement to sell the Follum mill to Viken Skog, which has ambitious, future plans for the site. This happened after Norske Skog’s decision to close the mill at Follum. 5 6 8 MAY JUNE AUGUST The report for the first quarter showed that lower Norske Skog announced plans to invest NOK 220 Higher capital utilisation and lower costs strengthen costs strengthened Norske Skog’s gross operating million in an expansion and renewal of the thermo- Norske Skog’s gross operating earnings in the earnings compared with the same quarter last year, mechanical pulp plant at Norske Skog Saugbrugs second quarter compared with the same quarter while net interest-bearing debt during the quarter in Halden. The old pulp plant will be replaced by a last year, reported Norske Skog. was reduced from NOK 7.9 billion to NOK 7.1 billion. modern facility, which will supply pulp to the paper Norske Skog entered into an agreement to sell its machines at a much lower cost than today. paper mill Parenco in Renkum in the Netherlands and the global recovered paper business, Reparco, to investment firm H2 Equity Partners. 9 11 12 SEPteMBer NOVEMBer DeceMBer Golbey celebrated 20 years of operations. Golbey Norske Skog reported that good capacity utilisation, Norske Skog and the environmental foundation was Norske Skog’s first newsprint site outside with high export levels and lower costs, counter- Bellona signed a partnership agreement to create Norway, and today the French mill is the most acted the effects of the weak market development in a more environmentally-friendly supply chain. The modern and best run mill in the whole Norske Skog Europe and Australia in the third quarter. During the collaboration aims to reduce the environmental Group. quarter, the net interest-bearing debt was reduced impact of current production, utilising logs in a from NOK 6.9 billion to NOK 6.3 billion. better way and finding the right commercial envi- It was announced that a machine at the Boyer mill ronmental solutions for production of bio-energy in Australia will be converted to the production of and bio-waste. coated grades, and that one newsprint machine at the Tasman mill in New Zealand will close. 4 I ANNUAL REPORT I NORSKE SKOG SUMMARY AND PRESENTATION Skogn, Norway Saugbrugs, Norway Golbey, France Walsum, Germany PLACES Bruck, Austria Pisa, Brazil around Singburi, Thailand THE MNI, Malaysia – 34% world Albury, Australia Boyer, Australia 11 Tasman, New Zealand PRODUCTION CAPACITY TONNES PER BUSINESS UNIT 31.12.2012 NEWSPRINT SC LWC/MFC (INCL IMPROVED NEWSPRINT) (MAGAZINE PAPER) (MAGAZINE PAPER) TOTAL Norske Skog Skogn, Norway 550 000 550 000 Norske Skog Saugbrugs, Norway 530 000 530 000 Norske Skog Golbey, France 630 000 630 000 Norske Skog Bruck, Austria 125 000 270 000 395 000 Norske Skog Walsum, Germany 425 000 425 000 Sum Europa 1 305 000 530 000 695 000 2 530 000 Norske Skog Albury, Australia 280 000 280 000 Norske Skog Boyer, Australia 270 000 270 000 Norske Skog Tasman, New Zealand 315 000 315 000 Sum Australasia 865 000 865 000 Norske Skog Pisa, Brazil 185 000 185 000 Sum South America 185 000 185 000 Norske Skog Singburi, Thailand 125 000 125 000 Total capacity 2 480 000 530 000 695 000 3 705 000 Norske Skog’s production capacity has been re-assessed during 2012.
Load more

Recommended publications
  • Lack of Estrogenic and Endocrine Disrupting Effects in Juvenile Rainbow Trout Exposed to a New Zealand Pulp and Paper Mill Efflu
    R. J. ELLIS URS New Zea/and Umited, Auckland, New Zea/and M. R. VAN DEN HEUVEL AND T. R. STUTHRIDGE Forest Research, Rotorua, New Zea/and N. L1NG University of Waikato, Hamilton, New Zea/and D. R. DIETRICH University ofKonstanz, Konstanz, Germany Abstract - Previous studies have noted effects of pulp and paper effluents on the physiology offishes including; smaller gonads, increased age to maturation, alterations in secondary sex characteristics, reduced plasma sex steroid levels, and the induction of vitellogenin (Vtg) in males and juveniles. A program to determine the potential impacts of a modem New Zealand pulp and paper mill effluent on fishes employed a combination of long- and short-term exposures of the juvenile (1+) rainbow trout, Oncorhynchus mykiss, to the effluent. Juvenile (1 + aged) rainbow trout were exposed to a mixed thermomechanical pulp/bleached kraft (TMP/BK) mill effluent at a range of concentrations from environmentally relevant (10%) to 70% (effluent by volume) in three exposure studies. During 21-,56- and 320-day exposures to 10% and 30% (viv) effluent, no significant impacts on circulating testosterone, and pregnenolone levels were observed. No significant induction of liver MFO activity was observed at any exposure concentration. Vitellogenin induction or expression of the estrogen receptor in juvenile males was not observed in fish from either experiment. High experimental mortality was observed in fish exposed to 70% (viv) secondary treated effluent compared to a reference treatment during the 2l-d exposure and was linked to an atypically high suspended solids load. Thus, the combined data from these experiments demonstrated a lack of estrogenicity or impacts on steroidogenesis following exposure to TMP/BK mill effluent.
    [Show full text]
  • Arbeidsgruppen for Treforedlingsindustrien Kartlegging Av Muligheter Og Rammevilkår for Treforedlingsindustrien
    Arbeidsgruppen for treforedlingsindustrien Kartlegging av muligheter og rammevilkår for treforedlingsindustrien 10.5.2012 1 Innhold 1. Innledning .......................................................................................................................... 3 1.1. Bakgrunn for arbeidsgruppen .................................................................................. 3 1.2. Arbeidsgruppens mandat, sammensetning og arbeid ............................................ 4 2. Hovedtrekk i utviklingen i treforedlingsindustrien ....................................................... 5 2.1. Nærmere om treforedlingsindustrien ...................................................................... 6 2.2. Muligheter ved omstilling til ny produksjon og investeringer i nye produkter 11 3. Råvaresituasjonen og norsk skogpolitikk ..................................................................... 12 3.1. Tilgang, avsetningsvilkår og markedssituasjonen for tømmer og trevirke ....... 13 3.2. Innsatsfaktoren tømmer og effektive transporter er viktig for treforedlingsindustriens kostnadsmessige konkurransekraft ............................ 15 3.3. Regjeringens virkemidler som skal bidra til stabil og konkurransedyktig forsyning av trevirke ................................................................................................ 17 4. Rammevilkår innenfor områdene energi og miljø ....................................................... 18 4.1. Rammevilkår på energiområdet ............................................................................
    [Show full text]
  • ANNUAL REPORT 1997 1 Main Figures Per Area
    NORSKE SKOG ANNUAL REPORT 1997 1 Main figures per Area 1997 1996 1995 1994 1993 1992 1991 1990 1989 Area Paper Operating revenue NOK million 9,284 9,493 8,066 5,831 4,731 4,773 5,855 6,733 5,768 Operating profit NOK million 1,134 2,078 1,708 454 469 95 656 721 398 Operating margin % 12.2 21.9 21.2 7.8 9.9 2.0 11.2 10.7 6.9 Area Fibre Operating revenue NOK million 1,376 1,222 2,171 1,498 1,052 1,202 1,247 1,709 2,025 Operating profit NOK million 49 -127 682 178 -187 -176 -164 327 615 Operating margin % 3.6 -10.4 31.4 11.9 -17.8 -14.6 -13.2 19.1 30.4 Area Building Materials Operating revenue NOK million 2,667 2,579 2,333 2,048 1,704 1,688 1,725 1,960 1,911 Operating profit NOK million -16 27 96 146 85 64 9 107 93 Operating margin % -0.6 1.0 4.1 7.1 5.0 3.8 0.5 5.5 4.9 Operating revenue per market Operating revenue per product Rest of Other world 8% 2% Pulp 8% Norway 23% Newsprint Special grades 1% USA 10% 40% SC magazine paper 20% Other Europe 25% Germany 15% LWC magazine paper 9% UK 11% France 8% Building materials 20% 2 NORSKE SKOG ANNUAL REPORT 1997 1997 Highlights Price decline caused weaker result Growth in sawn timber Expansion in Eastern Europe Prices of paper and pulp fell during the In September, Norske Skog took over In November, Norske Skog took over first quarter of 1997.
    [Show full text]
  • From Waste to Value
    4 New path development for forest- based value creation in Norway Antje Klitkou, Marco Capasso, Teis Hansen and Julia Szulecka 4.1 Introduction This chapter focuses on path development in the forest-based industries of Norway, based on the valorisation of side- streams and residues. Forest- based value creation is one of the main avenues for the emerging bioeconomy in Norway and the neighbouring Nordic countries Sweden and Finland. Historically, the forestry sector has been an important part of the Norwegian economy, both in terms of GDP and employment. The sector contributed 10.4% of Norwegian GDP in 1845 (Grytten, 2004, p. 254). After the discovery of oil and natural gas on the Norwegian shelf, the importance of the forestry sector has diminished. And over the last decade this negative trend has multiplied. For decades, the forestry- based industry in Norway has specialised in pulp and paper production, especially newsprint paper. Therefore, huge volumes of forest resources, including residues and side- streams, have been poured into this industry. However, due to changing global market conditions – the massive deployment of the Internet reducing demand for newspapers – and the rise of competitors in other parts of the world, European pulp and paper production has declined significantly in the last decade (Karltorp & Sandén, 2012). This development has had a tremendous impact on the market possib- ilities of forestry residues, since they can now be processed for pulp and paper to a much lesser degree. Nevertheless, other valorisation pathways exist besides pulp and paper production, such as the wooden construction industry, wooden furniture manufacturing, bioenergy – including solid bioenergy and liquid biofuels – and the production of lignocellulosic chemicals and mater- ials.
    [Show full text]
  • Third Quarter 2020
    THIRD QUARTER 2020 - QUARTERLY REPORT - PRESENTATION - PRESS RELEASES NORSKE SKOG QUARTERLY REPORT – THIRD QUARTER 2020 (UNAUDITED) 2 ││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││││ INTRODUCTION Norske Skog is a world leading producer of publication paper with Of the four mills in Europe, two will produce recycled containerboard strong market positions in Europe and Australasia. Publication paper following planned conversion projects. In addition to the traditional includes newsprint and magazine paper. Norske Skog operates six publication paper business, Norske Skog aims to further diversify its mills in five countries, with an annual production capacity of 2.3 million operations and continue its transformation into a growing and high- tonnes. Four of the mills are located in Europe, one in Australia and margin business through a range of exciting fibre projects. one in New Zealand. The group also operates a pellet facility in New Zealand. Newsprint and magazine paper is sold through sales offices The parent company, Norske Skog ASA, is incorporated in Norway and and agents to over 80 countries. The group has approximately 2 300 has its head office at Skøyen in Oslo. The company is listed on Oslo employees. Stock Exchange with the ticker NSKOG. KEY FIGURES NOK MILLION Q3 2020 Q2 2020 Q3 2019 YTD 2020 YTD 2019 INCOME STATEMENT
    [Show full text]
  • Press Release Norske Skog to Close the Tasman Mill in New Zealand
    Press release 9 June 2021 Norske Skog to close the Tasman mill in New Zealand and sell mill assets Reference is made to the stock exchange release dated 9 October 2020 regarding a strategic review of the Tasman mill in New Zealand. Norske Skog today announces the closure of the Tasman mill in New Zealand and a sales process for the mill’s assets. Production will cease by 30 June 2021, permanently reducing Norske Skog’s newsprint capacity by approximately 150,000 tonnes. Since the initiation of the strategic review process in New Zealand in October 2020, a process made necessary by the secular decline of the publication paper industry and the impact of COVID-19, Norske Skog has explored a range of alternatives for the Tasman mill. Following a careful review, this process has resulted in a decision to close the Tasman mill and a sale of the mill’s assets. Production will cease by 30 June 2021, reducing Norske Skog’s newsprint capacity by approximately 150,000 tonnes per annum. The Tasman mill has only produced very limited volumes during 2021. Norske Skog will honour all redundancy and contractual obligations to the mill’s approximately 160 employees as the workforce is progressively reduced during the third quarter. - The decision to close the Tasman mill follows a detailed review over the past eight months. It will address the substantial imbalance between newsprint production capacity and customer demand in the Australasian region. The Tasman mill has been an important contributor to the regional economy in New Zealand for the past 66 years, producing more than 15 million tonnes of publication paper over its lifetime.
    [Show full text]
  • SUSTAINABILITY REPORT 2020 We Create Green Value Contents
    SUSTAINABILITY REPORT 2020 We create green value Contents SUMMARY Key figures 6 Norske Skog - The big picture 7 CEO’s comments 8 Short stories 10 SUSTAINABILITY REPORT About Norske Skog’s operations 14 Stakeholder and materiality analysis 15 The sustainable development goals are an integral part of our strategy 16 Compliance 17 About the sustainability report 17 Sustainability Development Goals overview 20 Prioritised SDGs 22 Our response to the TCFD recommendations 34 How Norske Skog relates to the other SDGs 37 Key figures 50 GRI standards index 52 Independent Auditor’s assurance report 54 Design: BK.no / Print: BK.no Paper: Artic Volum white Editor: Carsten Dybevig Cover photo: Carsten Dybevig. All images are Norske Skog’s property and should not be used for other purposes without the consent of the communication department of Norske Skog Photo: Carsten Dybevig SUMMARY BACK TO CONTENTS > BACK TO CONTENTS > SUMMARY Key figures NOK MILLION (UNLESS OTHERWISE STATED) 2015 2016 2017 2018 2019 2020 mills in 5 countries INCOME STATEMENT 7 Total operating income 11 132 11 852 11 527 12 642 12 954 9 612 Skogn, Norway / Saugbrugs, Norway / Golbey, France / EBITDA* 818 1 081 701 1 032 1 938 736 Bruck, Austria / Boyer, Australia / Tasman, New Zealand / Operating earnings 19 -947 -1 702 926 2 398 -1 339 Nature’s Flame, New Zealand Profit/loss for the period -1 318 -972 -3 551 1 525 2 044 -1 884 Earnings per share (NOK)** -15.98 -11.78 -43.04 18.48 24.77 -22.84 CASH FLOW Net cash flow from operating activities 146 514 404 881 602 549 Net cash flow
    [Show full text]
  • Paper Technology Journal
    Paper Technology Journal News from the Divisions: CompactPulper – the new generation of Voith broke pulpers. The success story of Shandong Huatai Paper and Voith Paper keeps on rolling. Adolf Jass, Germany – complete production line for packaging papers. PrintFlex P – development of a new press fabric concept. Paper Culture: 17 Japanese Paper Blossoms Anew. Contents EDITORIAL Title page: Foreword 1 Traditional production Mixed Tropical Hardwood – of Japanese Paper. a minor and declining source of fibre for paper 2 NEWS FROM THE DIVISIONS Fiber Systems: CompactPulper – the new generation of Voith broke pulpers 7 Fiber Systems: Rejects and residue disposal from recycled fiber plants – Europe as the pioneer in rejects handling systems 10 Paper Machines: The success story of Shandong Huatai Paper and Voith Paper keeps on rolling 15 Finishing: China’s first Twister – automated paper roll wrapping par excellence 20 Trade fair and more... Voith Paper demonstrates its technological competence and close relationship with customers 23 Paper Machines: Kimberly PM 96 – position for lang-term competitiveness 26 Paper Machines: NipcoFlex and TissueFlex – Shoe press technology for the dewatering of all paper grades 28 Paper Machines: Hengfeng PM 12 – new quality benchmark for cigarette paper 32 Paper Machines: Adolf Jass Paper Mill, Schwarza, Germany – another complete production line for packaging papers 36 Paper Machines: Zülpich PM 6 – still one of the most productive paper machines for Testliner and Corrugating Medium 39 Finishing: Excellent threading
    [Show full text]
  • Annual Report Contents
    2014 ANNUAL REPORT CONTENTS SUMMARY AND PRESENTATION 3 3 Key figures 3 Norske Skog 2014 4-5 CEO’s comments 6 Short stories 8-11 Board of Directors 12 Corporate Management 13 CORPORATE SOCIAL RESPONSIBILITY 15 15 Norske Skog and local communities 19 Key figures - employees 2014 20 Paper production 22 Production capacity 22 Evaluation of our environmental performance 23 Sustainable raw materials 24 Energy consumption 26 Norske Skog’s greenhouse gas emissions 27 Our carbon footprint 28 Continuously improving our production processes 29 Water 31 Emissions to air and discharge to water 32 Mill figures 34 Independent auditor’s report 36 Environment and corporate social responsibility reporting 36 REPORT OF THE BOARD OF DIRECTORS 38 38 Organisation 40 CONSOLIDATED FINANCIAL STATEMENTS 42 42 Notes to the consolidated financial statements 50 FINANCIAL STATEMENTS NORSKE SKOGINDUSTRIER ASA 96 96 Notes to the financial statements 102 Independent auditor’s report 116 Declaration from the board of directors and CEO 118 CORPORATE GOVERNANCE 120 120 Shares and share capital 124 SUMMARY AND PRESENTATION 126 126 Key figures related to shares 126 Articles of Association for Norske Skogindustrier ASA 128 Design and layout: pan2nedesign.no // Tone Strømberg Print: 07 Aurskog Paper: Norcote Trend 90 g/m2 - Norske Skog Photo and editor: Carsten Dybevig All images are Norske Skog’s property and should not be used for other purposes without the consent of the communication dept. of Norske Skog KEY FIGURES DEFINITIONS 2014 2013 2012 2011 2010 2009 INCOME STATEMENT
    [Show full text]
  • Kinleith Transformation
    Improving Maintenance Operation through Transformational Outsourcing Jacqueline Ming-Shih Ye MIT Sloan School of Management and the Department of Engineering Systems 50 Memorial Drive, Cambridge, Massachusetts 02142 408-833-0345 [email protected] Abstract Outsourcing maintenance to third-party contractors has become an increasingly popular option for manufacturers to achieve tactical and/or strategic objectives. Though simple in concept, maintenance outsourcing is difficult in execution, especially in a cost-sensitive environment. This project examines the Full Service business under ABB Ltd to understand the key factors that drive the success of an outsourced maintenance operation. We present a qualitative causal loop diagram developed based on the case study of Kinleith Pulp and Paper Mill in New Zealand. The diagram describes the interconnections among various technical, economic, relationship, and humanistic factors and shows how cost-cutting initiatives can frequently undermine labor relationship and tip the plant into the vicious cycle of reactive, expensive work practices. The model also explains how Kinleith achieved a remarkable turnaround under ABB, yielding high performance and significant improvements in labor relations. A case study of Tasman Pulp and Paper Mill provides a contrasting case where success has been more difficult. Results point to the importance of creating sufficient resources (“slack”) to implement improvement activities and pace implementation based on pre-existing dynamics on site. Introduction From multi-million dollar IT systems and Lean methodology to smaller-scale initiatives around organizational design or human resource development, companies continue to search for ways to better performance. Outsourcing, once seen as pure cost-reduction, is increasingly viewed as an option with considerable strategic value.
    [Show full text]
  • Annual Report 2011 Norske Skog
    ANNUAL REPORT 2011 NORSKE SKOG NORWEGIAN PAPER TRADITION 2 SUMMARY AND PRESENTATION KEY FIGURES DEFINITIONS 2011 2010 2009 2008 2007 2006 INCOME STATEMENT Operating revenue 18 904 18 986 20 362 26 468 27 118 28 812 Gross operating earnings 1 1 515 1 413 2 185 2 723 3 932 4 704 Operating earnings -2 701 -2 379 -1 325 -1 407 677 -2 527 Net profit/loss for the year -2 545 -2 469 -1 400 -2 765 -683 -3 017 Earnings per share (NOK) -13.36 -12.97 -6.36 -14.33 -3.26 -14.84 CASH FLOW Net cash flow from operating activities 455 397 1 697 1 977 2 166 2 763 Net cash flow from investing activities 470 415 -587 2 289 -1 644 -498 Cash flow per share (NOK) 2.40 2.09 8.95 10.43 11.43 14.60 OPERATING MARGIN AND PROFITABILITY (%) Gross operating margin 2 8,0 7.4 10.7 10.3 14.5 16.3 Return on capital employed 3 -0,9 -3.1 -1.2 0.3 3.0 3.6 Return on equity 4 -28.9 -22.2 -10.9 -18.7 -4.0 -14.6 Return on assets 5 -8.7 -7.5 -3.1 -2.8 1.8 -4.7 PRODUCTION / DELIVERIES / CAPACITY UTILISATION Production (1 000 tonnes) 3 832 3 998 3 895 5 377 6 049 6 078 Deliveries (1 000 tonnes) 3 857 4 013 3 894 5 412 6 027 6 106 Production / capacity (%) 87 89 79 93 95 92 31.12.2011 31.12.2010 31.12.2009 31.12.2008 31.12.2007 31.12.2006 BALANCE SHEET Non-current assets 15 803 19 271 23 546 26 980 29 307 37 577 Current assets 6 171 10 027 9 609 18 211 13 953 7 653 Total assets 21 974 29 297 33 155 45 191 43 260 45 230 Equity 7 433 10 183 12 015 13 632 15 957 18 550 Net interest-bearing debt 6 7 863 8 889 9 595 14 047 16 408 17 320 Gearing (net interest-bearing debt / equity) 7 1.06 0.87 0.80 1.05 1.05 0.96 OPERATING REVENUE GROSS OPERATING EARNINGS NET INTEREST-BEARING DEBT MNOK MNOK MNOK 30 000 5 000 18 000 4 500 16 000 25 000 17 320 28 812 4 000 4 704 14 000 16 408 27 118 26 468 20 000 3 500 12 000 3 932 14 047 3 000 10 000 20 362 15 000 18 986 18 904 2 000 8 000 2 723 9 595 10 000 1 500 6 000 8 889 7 863 2 185 1 000 4 000 5 000 1 515 500 1 413 2 000 0 0 0 20062007 2008 2009 2010 2011 20062007 2008 2009 2010 2011 20062007 2008 2009 2010 2011 DEFINITIONS KEY FIGURES 1.
    [Show full text]
  • Norske Skog Annual Report 2020 / Norske Skog 7 SUMMARY BACK to CONTENTS > BACK to CONTENTS > SUMMARY
    ANNUAL REPORT 2020 We create green value Contents SUMMARY Key figures 6 Norske Skog - The big picture 7 CEO’s comments 8 Share information 10 Board of directors 12 Corporate management 13 Short stories 14 SUSTAINABILITY REPORT About Norske Skog’s operations 18 Stakeholder and materiality analysis 19 The sustainable development goals are an integral part of our strategy 20 Compliance 21 About the sustainability report 21 Sustainability Development Goals overview 24 Prioritised SDGs 26 Our response to the TCFD recommendations 38 How Norske Skog relates to the other SDGs 41 Key figures 54 GRI standards index 56 Independent Auditor’s assurance report 58 Corporate governance 60 Report of the board of directors 68 CONSOLIDATED FINANCIAL STATEMENTS 73 Notes to the consolidated financial statements 78 FINANCIAL STATEMENTS NORSKE SKOG ASA 119 Notes to the financial statements 124 Statement from the board of directors and the CEO 132 Independent auditor’s report 133 Alternative performance measures 137 Design: BK.no / Print: BK.no Paper: Artic Volum white Editor: Carsten Dybevig Cover photo: Adobe Stock. All images are Norske Skog’s property and should not be used for other purposes without the consent of the communication department of Norske Skog Photo: Carsten Dybevig SUMMARY BACK TO CONTENTS > BACK TO CONTENTS > SUMMARY Key figures NOK MILLION (UNLESS OTHERWISE STATED) 2015 2016 2017 2018 2019 2020 mills in 5 countries INCOME STATEMENT 7 Total operating income 11 132 11 852 11 527 12 642 12 954 9 612 Skogn, Norway / Saugbrugs, Norway / Golbey,
    [Show full text]