Contract signed for construction of modern warehouse

Borregaard and Borg Havn have agreed to build a modern, sustainable lignin warehouse in Øra, near Fredrikstad. The warehouse will be 19 000 square metres in area, which corresponds to 43 000 pallet positions.

"This project will reduce CO2 emissions from road transport and relieve traffic growth on European roads.  It will also greatly reduce the local heavy transport related to Borregaard's exports from Borg Havn,” says Per A. Sørlie, CEO of Borregaard. 

“We are very happy to be working with Borregaard on this project.  The warehouse is important for several reasons. Not only will all of Borregaard's lignin now be stored in a centrally located logistics warehouse, but the position of the port will also be strengthened.  Increased volumes will allow for transport to more European destinations, which will also benefit other users of the port.  In this way, sea transport will increase and heavy road traffic will decrease,” says Tore Lundestad, Port Director of Borg. 

The new warehouse will optimise product flow and improve logistics.  Today, Borregaard stores lignin at a number of different sites, several of which are outside the company’s premises.  Lignin is currently transported via Borregaard's own port facility or by road to Borg for delivery to customers. A new warehouse to store all the lignin will therefore mean more efficient logistics with fewer stages of transportation.  

Concurrently with the construction of the warehouse in Øra, another lignin spray dryer is being built at Borregaard's production facility in Sarpsborg.  Spray dryers are used to convert liquid lignin to powder form, which significantly reduces transport, especially heavy transport, between Sarpsborg and Fredrikstad.

Borregaard is keen to have efficient zero-emissions solutions for the transportation of raw materials to its production facilities and products to its customers.  In addition to a joint pilot project to study possible autonomous transport solutions by ship across the River Glomma between Sarpsborg and Fredrikstad, Borregaard is also looking into the future potential for road transport using electric vehicles.

Borregaard's plant in Sarpsborg has an annual lignin capacity of 160 000 tons, and an increasing proportion is speciality products.  A centralised warehouse at Borg is part of a project where Borregaard is investing NOK 500 million in upgrading and specialisation of the Sarpsborg plants producing lignin products.  The project also involves enhanced drying capacity, new ideas for the storage of liquid materials and improved solutions for logistics, infrastructure and energy.

The warehouse will be completed in mid-2019.  It will be built and owned by Borg Havn Eiendom AS, a subsidiary of Borg Havn IKS.  The main contractor is Metacon (Rakkestad), the warehouse shelving will be supplied by Lager & Industrisystemer (Vinterbro) and the architect is Bjar Arkitekter (Fredrikstad).  The building is designed for future energy-saving solutions such as roof-mounted solar cells.