Borregaard: LignoTech Ibérica

The Sniace Group, Borregaard's partner and supplier of lignin raw material to the jointly owned company LignoTech Ibérica, is now in the process of restarting the viscose fiber plant at the site in Torrelavega, Spain. The viscose plant was shut down at the beginning of 2013 due to poor economic results. Sniace will increase pulp production in order to supply the necessary cellulosic raw material for the viscose operation, which in turn will mean an increased supply of lignin raw material to LignoTech Ibérica. Potentially this will represent an additional quantity of 20 - 30.000 tonnes of lignin (calculated as dry matter) when the viscose plant reaches full capacity. Market conditions for the liquid eucalyptus based lignin from Spain are currently challenging, and placing the increased volumes in the market will mean additional logistics costs for LignoTech Ibérica. See also the stock exchange notice of 25 October 2017.

Sarpsborg, 20 November 2017

Jørn Syvertsen, Director Investor Relations, +47 958 36 335

This information is subject to the disclosure requirements pursuant to Section 5-12 of the Norwegian Securities Trading Act.