Orkla's Chemicals area Borregaard and the South African company Sappi Saiccor have on December 15 established a 50/50 joint venture for the production of lignin based products near Durban.
The agreement is based on the intentional agreement which was announced on June 8, 1997. The construction of the plant has started. It will initially have an annual capacity of 55,000 tonnes of lignin products. It is the intention to expand the capacity up to as much as 200,000 tonnes later. The investment in the first step will amount to approx. NOK 160 million. The start-up of the operation is scheduled for the yearend 1998. The plant will have 40 employees.
Lisbeth Lindberg, Director Information/Investor Relations tel. + 47 22 54 44 23/ +47 22 54 4000