Borregaard enters lignin production in the US

Borregaard and Rayonier Advanced Materials invest 110 million USD in lignine production in the US.

Borregaard and Rayonier Advanced Materials has signed a letter of intent to build a lignin plant with a capacity of 150 000 tonnes in connection to Rayoniers pulp mill in Fernandina Beach in Florida. A new company is founded, owned 55 per cent by Borregaard and 45 percent by Rayonier.

Rayoniers plant in Florida manufactures specialty cellulose and lignin raw material from pine, using Borregaard's expertise and technology within lignin additives for concrete and similar applications, primarily manufactured for North and South American markets.

The two companies plan to complete the project in two phases over five years, an investment of approximately USD 110 million. Commercial production is scheduled to start in 2017 and the products will be marketed by Borregaard's international sales network.