Borregaard acquires lignin business in Brazil

14.03.2006: Borregaard has agreed to purchase the shares of the lignin product company Melbar Produtos de Lignia, Ltda, from its current shareholders; M-I Swaco do Brasil - Comércio, Serviços e Mineração Ltda. and Companhia Melhoramentos de São Paulo.

Borregaard is through Borregaard LignoTech the only global player within lignin based products. Melbar has 36,000 mtds manufacturing capacity based in Cambara do Sul, Brazil and offices in São Paulo. The purchase of Melbar gives Borregaard an important foothold to serve markets in Brazil and the rest of South America.
Lignin is a wood based raw material used in production of a wide range of speciality products sold to construction, feed and agricultural industries, oil well drilling, briquetting and batteries.
The parties have agreed not to disclose the conditions of transfer.
Borregaard is an international company within wood based chemicals and selected niches of fine chemicals and ingredients. Borregaard has production units and sales offices in 20 countries world wide, and expects sales to total USD 650 million in 2006