Borregaard

Delisting Announcement • Oct 23, 2020

Borregaard ASA: Permanent closure of lignin production in South Africa

Borregaard ASA: Permanent closure of lignin production in South Africa

Reference is made to the stock exchange notices of 8 May and 2 April 2020

regarding the mothballing of the lignin plant in Umkomaas, KwaZulu Natal.

The owners of LignoTech South Africa, Borregaard and the Sappi Group, have

decided to permanently close the lignin production facility and to terminate the

cooperation agreement. The closure is a consequence of Sappi's decision to

convert their calcium sulphite pulp line, which is the source of lignin raw

material, to magnesium technology. After the conversion, the spent liquor from

the pulping process will be burnt, and the energy and chemicals will be

recovered.

The conversion of the pulp line will be completed mid-2021. In the interim

period, the calcium sulphite pulp line will be operated to some extent,

resulting in limited production of liquid lignin by LignoTech South Africa until

the permanent closure comes into effect.

Sarpsborg, 23 October 2020

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.