Norske Skog acquires Nature’s Flame, leading New Zealand wood pellets producer

Norske Skog has acquired Nature’s Flame, the market leader for wood pellets in New Zealand, Norske Skog announced. The company has a domestic market share of around 70%.

The initial investment is small, with new production assets acquired at a fraction of construction costs. Initially, Norske Skog will lift the annual production at the company from currently 20 000 tons to 80 000 tons by year-end 2016.
There are large environmental benefits to be harvested in replacing fossil fuels for heating with renewable wood pellets. If a proven stand-alone concept is established, Norske Skog will consider expanding the pellets production to the Tasman newsprint site, leveraging waste fibre for renewable pellets revenue. The export potential to Asia is large given the site’s favorable New Zealand location, says Sven Ombudstvedt, President and CEO of Norske Skog.