Norske Skog's corporate management recommends to the board of directors to maintain full operations at the mills in Skogn and Halden for the time being, but to close down production at Follum mill. The management's plan means that production at Follum will cease no later than 31 March 2012.”It is with regret towards all employees, suppliers and the local community that we recommend to close Norske Skog Follum. Norske Skog sells less paper than before, since many replace paper with electronic media. Therefore, we unfortunately no longer need as many paper mills,” says Sven Ombudstvedt, CEO of Norske Skog.Norske Skog has phased out a number of small mills in Norway and abroad over the past five years. Follum is Norske Skog's smallest Norwegian mill, and it has the highest costs per ton. Alternatives for continued operation of Follum have been investigated. However, a solution which is justifiable for Norske Skog has not been found.”We do not need more competition and more paper in the market. We need fewer competitors and less paper in the market. Continued operation of Follum with another owner, would make the situation considerably more difficult for our other mills in Norway,” says Ombudstvedt.Norske Skog Follum is located in Hønefoss and has 356 employees. The mill produces improved newsprint, magazine paper and book paper. Annual production capacity is 290,000 tons. /AA