Borregaard - Capital/Financing Update 2017

Borregaard: Upgrade and increased specialisation of lignin operation in Norway

Borregaard will invest NOK 500 million in a programme to upgrade and specialise

the production facilities for lignin products at the Sarpsborg site in Norway.

The project includes new drying capacity, tanks for storage of liquid materials

and improved solutions for logistics, infrastructure and energy. The investments

will be completed by the end of 2019.

Lignin capacity at the Sarpsborg site is 160,000 metric tonnes dry solid per

year, of which an increasing share is speciality products. The new investment

will enable further specialisation on the unique raw material base, and will

reduce the exposure to cyclical market segments. It will also facilitate

optimisation of production campaigns and improve logistics.

New storage tanks for liquid materials meet future environmental standards, and

will eliminate the need for external storage capacity and reduce logistics

costs. New installations for infrastructure and energy will reduce energy costs

and offer substantial environmental and safety benefits.

The investment programme will be classified partly as expansion and partly as

replacement investment. The programme as a whole meets Borregaard's return

requirements for expansion investments.

Sarpsborg, 2 May 2017

Contact:

Jørn Syvertsen, Director Investor Relations, +47 958 36 335

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

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