Borregard ChemCell invests in the Speciality Cellulose business

Borregaard ChemCell will invest NOK 310 mill. (USD 35 mill.) at its plant in Sarpsborg, Norway, to build facilities for the incineration of the sidestreams coming from the hot alkali extraction in the pulp bleaching plant, as well as those coming from the production of lignin based vanillin.

These sidestreams have traditionally been sold as make-up chemicals to kraft pulp mills. As a result of the higher degree of specialisation in Borregaard ChemCell, and the success of newly developed cellulose derivatives grades in the market, the quantities of sidestreams coming from the speciality pulp production are increasing substantially. At the same time, the kraft pulp producers are working towards closing their systems, and consequently reducing their demand for additional chemicals.

The incineration plant will have the capacity to handle all future sidestreams of this kind from the production of speciality pulp, vanillin and lignin, thus securing the long term viability of the unique concept at the Sarpsborg site. It will cover about ten percent of the total consumption of thermal energy at the site, thus partly replacing fuel oil, and also give other environmental benefits in the form of reduced transportation and emissions.

Borregaard ChemCell is the leading European producer of speciality pulp for the chemical industry, present in all main markets globally. A newly introduced ultra high viscosity grade enables the producers of cellulose ethers to replace cotton linters pulp with woodpulp for a number of applications.

Borregaard is an international chemicals company with strong global positions within niches of speciality chemicals, fine chemicals and ingredients to food and feed producers. The Group has production units and sales offices in Europe, the Americas, Asia and Africa. Borregaard has 2,400 employees and expect sales of NOK 6.5 bill. (USD 800 mill.) in 2001.