Borregaard acquires Biotech

27.01.2004. Borregaard has acquired 100% of the shares in the Austrian company Biotech from Arbor Vitae Privatstiftung.

This acquisition will give Borregaard LignoTech a foothold in the rapidly growing Central and Eastern European markets through Biotech's established sales and marketing network.

Borregaard LignoTech has during the past 10 years focused its marketing efforts mainly on Middle East, Europe, US and Asia / Pacific, and very limited efforts have been given to Eastern Europe. Borregaard strongly believes in growth in this region and the extension of the EU member countries in 2004 will give new opportunities to increase demand of Borregaard products and to develop new markets. To include Biotech in the Borregaard Group represents a good fit by combining Borregaard LignoTech's lignin competence and wide product portfolio with Biotech's business system and knowledge about the Eastern European markets.
 
Lignin is a wood based raw material used in production of a wide range of speciality products such as within construction, feed and agricultural industry, oil well drilling, briquetting and batteries.
 
The Biotech group consists of sales offices in Austria, the Czech Republic, Slovenia and Hungary (minority interest). Biotech also has a long-term raw materials and production agreement, amounting to 40,000 - 50,000 tonnes of lignin based products, with the Czech pulp manufacturer Biocel. Biotech had in 2003 a turnover of EUR 8 million and has currently 14 man-years employed.
 
Borregaard LignoTech is the world's leading supplier of lignin based products with 12 plants and a global sales network in Europe, America, Asia and Africa. Borregaard LignoTech is part of the Borregaard Group which is an international chemicals company within specialty chemicals, fine chemicals and ingredients. The Group turnover in 2003 amounted to EUR 700 million.