Borregaard ASA: LignoTech Ibérica
Due to challenging market conditions for its lignin products the board of LignoTech Ibérica, a company owned 60% by Borregaard and 40% by the Spanish Sniace group, decided to give notice of termination of the agreement governing the supply of raw material from Sniace on 25 October 2017. According to the terms of the agreement the termination could take effect from 25 October 2019 at the earliest, as informed in a stock exchange notice from Borregaard dated 25 October 2017.
The Sniace group has noticed the board of LignoTech Ibérica that it will exercise its right to request an extension of the raw material supply agreement to 31 December 2021. This request has been acknowledged by LignoTech Ibérica, and the agreement will therefore be in force until the end of 2021. Thereafter it will terminate with effect from 1 January 2022 unless the parties agree on a continuation of the cooperation.
Sarpsborg, 10 September 2019
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.