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LignoTech to hike lignin capacity by 20,000 tons

13 Jul '15

2 min read

The joint venture (JV) between Borregaard and Sappi, LignoTech South Africa will increase lignin production capacity by 20,000 tons at an investment of ZAR 105 million, with completion expected in 2017.

LignoTech South Africa is an equal stake JV and was established in 1997 in KwaZulu-Natal and its capacity has been gradually expanded over time.

According to a Sappi press release, the new investment will increase the installed capacity to approximately 180,000 metric tons dry substance per year.

Borregaard provides the joint venture with sales and marketing functions in overseas export markets, in addition to technology, research and development functions.

While on the other hand, Sappi supplies lignin raw material and utilities from Sappi’s Saiccor Mill.

The products from LignoTech South Africa are used in a wide range of applications such as industrial dust control, concrete admixtures, animal feed and agrochemicals.

Per Arthur Sørlie, CEO of Borregaard said, “It is a strategic priority for Borregaard to grow our lignin business.”

“This investment will strengthen LignoTech South Africa’s competitive position, and improve our offering to key markets in Asia, Middle East and Africa,” he added.

Steve Binnie, CEO of Sappi Limited, said, “Looking to the future, Sappi will target strong growth from new business opportunities related to energy, nanocellulose and bioproducts including lignin.”

Binnie too added, “This expansion is an important vote of confidence in our joint venture with Borregaard and the global competitiveness of LignoTech.”

Borregaard (BRG Oslo) operates the world's most advanced biorefinery and by using natural, sustainable raw materials, Borregaard produces advanced and environmentally friendly biochemicals, biomaterials and bioethanol.

The Borregaard Group has 1,080 employees in 16 countries and a turnover in 2014 of approximately NOK 4 billion or $500 million with sales to around 100 countries worldwide.

The lignin business constitutes close to 50 per cent of the Group’s turnover with manufacturing plants in seven countries.

Sappi Limited is a global company focused on dissolving wood pulp used in the manufacture of viscose staple fibre, pharmaceutical and household products, paper-based solutions for printing and packaging.

Sappi is headquartered in Johannesburg, South Africa, with over 13,000 employees worldwide and manufacturing operations on three continents in seven countries and has group sales of $6 billion. (AR)

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