The paper machine that Norske Skog is temporarily closing is relatively small. Annual production of PM2 in Skogn is only about 150 000 tons of newsprint of the mill’s total annual capacity of 550 000 tons.According to Norske Skog, the hope is that a temporary closure of the line will yield an improved balance between supply and demand.However, it is not beyond the realms of possibility that the paper machine will be permanently shut down. Norske Skog has told Nordic Paper Journal that it has exhausted all other possibilities to commence production of other paper grades in the paper machine. - We are continuously monitoring whether or not to permanently close the papermachine. Our decision is entirely dependent on market developments, says Carsten Dybevig, Vice President Corporate Affairs to Nordic Paper Journal.Export of paper from PM2 is mainly destined for the UK market.Demand for the products is weak and the Norwegian Krone is strong, which are the factors behind the temporary closure of the line. Should prices rise, Norske Skog will be able to improve profitability on the line, but this remains to be seen.Norske Skog is also cutting back production by 15,000 tons at the company’s only paper machine in New Zealand. This is the result of increased energy costs, according to Norske Skog.