Borregaard's LignoTech Ibérica terminates cooperation agreement with Spain's Sniace Group

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Borregaard's LignoTech Ibérica terminates cooperation agreement with Spain's Sniace Group

October 31, 2017 - 05:57
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SARPSBORG, Norway, Oct. 25, 2017 (Press Release) -Since operations were resumed in the 4th quarter of 2016, the market conditions for LignoTech Ibérica have been challenging. The board of LignoTech Ibérica S.A., a company owned 60% by Borregaard and 40% by the Spanish Sniace Group, has today given notice of termination of the cooperation agreement between LignoTech Ibérica and the Sniace Group.

The cooperation agreement governs the Sniace Group’s obligation to deliver, and LignoTech Ibérica’s obligation to receive, lignin raw material. The termination may take effect from 25 October 2019, and gives LignoTech Ibérica the option to discontinue operations at the end of the notice period if the business proves to be unsustainable.