Upgrade and increased specialisation of lignin operation in norway

Borregaard will invest NOK 500 million in a programme to upgrade and specialise the production facilities for lignin products at the Sarpsborg site in Norway. The project includes new drying capacity, tanks for storage of liquid materials and improved solutions for logistics, infrastructure and energy. The investments will be completed by the end of 2019.

Lignin capacity at the Sarpsborg site is 160,000 metric tonnes dry solid per year, of which an increasing share is speciality products. The new investment will enable further specialisation on the unique raw material base, and will reduce the exposure to cyclical market segments. It will also facilitate optimisation of production campaigns and improve logistics.

New storage tanks for liquid materials meet future environmental standards, and will eliminate the need for external storage capacity and reduce logistics costs. New installations for infrastructure and energy will reduce energy costs and offer substantial environmental and safety benefits.

The investment programme will be classified partly as expansion and partly as replacement investment. The programme as a whole meets Borregaard's return requirements for expansion investments.