A person welding in Florida
June 27, 2018

Borregaard and Rayonier officialy begin lignin production in Florida

From EUWID – FERNANDINA BEACH, Fla. (June 26, 2018) – Lignotech Florida, a joint-venture company between the Norwegian biochemical company Borregaard and the U.S. specialty pulp manufacturer Rayonier Advanced Materials, has officially started production of lignin products at a new facility adjacent to Rayonier’s Fernandina Beach mill. The new lignin facility was built and commissioned at a cost of $110 million and will have an initial production capacity of 100,000 tons per year (TPY). In the second phase of the project, the capacity could be expanded by another 50,000 TPY, according to the companies involved. More than 50 new jobs will be created at the facility.

Utilising Borregaard’s know-how and technical expertise, Lignotech Florida was officially foreseen to produce and sell the lignin products primarily to the construction industry. “However, based on the inherent properties in the raw material, a number of alternative markets have been identified. The construction segment will still be very important, but the share of sales going to this end use is now foreseen to be below 50% in 2018,” Borregaard announced.

Rayonier’s Fernandina mill in Florida manufactures specialty cellulose and lignin raw material as co-products from softwood. Rayonier puts the production capacity of the Fernandina plant at 155,000 TPY.