Borregaard ASA: Permanent closure of lignin production in South Africa - Global Paper Money

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Borregaard ASA: Permanent closure of lignin production in South Africa

SOUTH AFRICA (News release) -- Reference is made to the stock exchange notices of 8 May and 2 April 2020 regarding the mothballing of the lignin plant in Umkomaas, KwaZulu Natal.

The owners of LignoTech South Africa, Borregaard and the Sappi Group, have decided to permanently close the lignin production facility and to terminate the cooperation agreement. The closure is a consequence of Sappi's decision to convert their calcium sulphite pulp line, which is the source of lignin raw material, to magnesium technology. After the conversion, the spent liquor from the pulping process will be burnt, and the energy and chemicals will be recovered.

The conversion of the pulp line will be completed mid-2021. In the interim period, the calcium sulphite pulp line will be operated to some extent, resulting in limited production of liquid lignin by LignoTech South Africa until the permanent closure comes into effect.

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