Borregaard ASA Faces Temporary Production Setback in Cellulose
Borregaard ASA Adjusts to Production Challenges
Borregaard ASA has recently dealt with an unexpected disruption at its Sarpsborg facility, which plays a crucial role in the manufacture of speciality cellulose. This situation arose due to an outage that hindered the production of specific cellulose grades, leading to shipment delays.
Impact on Speciality Cellulose Supply
The outage meant that Borregaard could only produce cellulose grades that deviate from standard specifications. While this has affected their shipment schedules, the excellent work by the company to resolve these issues has minimized disruptions for its customers.
Other Products Unaffected
It's important to note that despite the issues with cellulose, the production of other products at the biorefinery, including lignin-based biopolymers, bio-vanillin, bioethanol, and cellulose fibrils, continued without any setbacks.
Expected Deliveries and Financial Impact
For the upcoming quarter, Borregaard anticipates delivering around 30,000 tonnes of speciality cellulose. This figure reflects a decrease from their earlier forecast of 35,000 to 38,000 tonnes, as outlined in their previous quarterly report. The company projects that this production issue will negatively influence their Group's EBITDA by approximately NOK 40–50 million during the quarter.
Moving Forward
Borregaard’s proactive approach includes collaborating with both internal resources and external specialists to expedite the resolution of production challenges and to support its customers effectively.
Company Contact Information
If you have further inquiries, please reach out to Per Bjarne Lyngstad, Chief Financial Officer at Borregaard ASA, via phone at +47 952 44 515. They are committed to maintaining transparency and open communication during this period.
Frequently Asked Questions
What caused the production disruption at Borregaard ASA?
An unforeseen outage at the Sarpsborg facility led to the interruption in the production of speciality cellulose.
How many tonnes of speciality cellulose does Borregaard expect to deliver?
They expect to deliver approximately 30,000 tonnes, which is lower than their previous forecast.
What is the financial impact of the disruption?
The estimated negative impact on the Group’s EBITDA is projected to be between NOK 40–50 million for the quarter.
Were other products affected by this disruption?
No, production of other products such as bio-vanillin and bioethanol has remained unaffected.
Who can I contact for more information about Borregaard ASA?
For further details, you can contact Per Bjarne Lyngstad, Chief Financial Officer, at +47 952 44 515.
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