Borregaard: Supply of lignin raw material from Sniace to LignoTech Ibérica has been resumed
The dissolving pulp mill in Torrelavega, Spain was shut down in the summer of 2013 due to the financial difficulties of its owner, the Sniace Group. As a result, supply of lignin raw material to LignoTech Ibérica, owned by Borregaard (60%) and Sniace (40%), was stopped. The lignin operation has since then been running at a low level of activity, based on raw material supplied from other sources. Following the successful refinancing of the Sniace Group earlier this year, pulp production has now been started up again. The supply of lignin raw material to LignoTech Ibérica has therefore been resumed. After a stable operation of the pulp mill has been achieved it is expected that supply of lignin raw material will correspond to an annual lignin production of about 35,000 tonnes. In a second phase, after investments in new equipment, Sniace plans to restart the downstream viscose textile operation on site. This will eventually provide sufficient raw material to bring the production at LignoTech Ibérica back to 65,000 tonnes per year.
For background information, see Borregaard's stock exchange notices from 27 May and 21 March 2016, 8 September, 25 July and 26 June 2013 (http://www.borregaard.com/Investor-Relations/Download-center?Query=*&subtreefilter=108002&Year=2013).
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.