The newsprint and magazine producer also announced that it would take out further capacity temporarily or permanently if it is needed to maintain a good supply and demand balance.

Tom Bratlie, vice president of corporate affairs, said these curtailments would be in addition to the capacity effect from the closures carried out in 2008.

However, he said that at present, overcapacity in the marketplace was not as much an issue as it was in 2008.

He said: "We closed 13% of our European newsprint capacity in 2008 and are therefore much better prepared for reduced demand in 2009 than what the situation would have been without measures taken in 2008."

Bratlie added that the reduced demand is the result of the financial crisis and more structural changes.

"It is important to be able to act fast on temporary changes and avoid overcapacity," he said.

Bratlie said that Norske Skog would continue to focus on swift capacity response and will continue to improve its financial situation through debt reductions.

In March last year, the paper manufacturer held emergency meetings over whether to shut down 450,000 tonnes of production capacity across its business.

It proposed that about 7% (450,000 tonnes) of its production capacity be shut down across a number of global sites.

The company also announced it would increase prices for 2009 in October last year.