Borregaard - Regulatory Filings 2014

Borregaard: Investing NOK 225 million in a production facility for Exilva microfibrillar cellulose

(22 October 2014) Borregaard ASA ("Borregaard", OSE ticker: BRG)

Borregaard's Board of Directors has decided to invest in a facility for the

production of Exilva microfibrillar cellulose (MFC). The plant will be built at

the Borregaard site in Sarpsborg. The investment is estimated to NOK 225

million.

The project is based on new innovations related to the product itself as well as

to the production process and the applications. Exilva MFC is based on natural

and renewable raw materials. It has the potential to replace products derived

from petrochemicals, and it also represents an opportunity to exchange organic

solvent systems with water based solutions. In total this will lead to

considerable positive environmental effects.

Borregaard's project to develop MFC started in 2005, and the R&D work has partly

been carried out in a pilot plant. The development work has taken place in close

cooperation with potential customers. The raw material, specialty cellulose, is

split into a complex network of fibrils with the use of proprietary technology

developed as part of the project. Exilva MFC has a unique set of

characteristics, including rheology modification, stabilisation, texture

modification and water retention. It can therefore find its way into valuable

and novel applications in a variety of products such as adhesives, detergents,

cosmetics, composites and other industrial formulations.

The commercial scale facility will have an initial design capacity of 1000

tonnes per year with a potential for expansion. Production is expected to start

in the 3rd quarter of 2016.

"Borregaard is well positioned to develop microfibrillar cellulose. The company

has a broad experience in the production of bio-chemicals based on natural raw

materials, a strong competence base within R&D for specialty products, and a

global marketing organisation directed towards customers in the chemical

industry. If successful, this project has the potential to become a new and

exciting business area for Borregaard", says President and CEO Per A. Sørlie.

Contact:

Jørn Syvertsen, Director Investor Relations, mobile +47 9583 6335

This information is subject to the disclosure requirements pursuant to Section

5-12 of the Norwegian Securities Trading Act.

[HUG#1864603]

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