Borregaard : New developments affecting raw material supply to Borregaard's lignin plant in Spain

Sniace, the supplier of raw material to Borregaard's lignin plant in Spain, has
decided not to start up the pulp mill and other activities until 24 September
2013.

The industrial production at Sniace's site in northern Spain was stopped on 1
July due to a strike initiated by the trade union, which ended on 14 July. It
was then decided to perform the annual two - three weeks maintenance stop,
normally carried out in August, immediately after the strike, when the mill was
already out of operation.

Sniace announced today that an agreement has been reached with the trade union,
according to which all production on site will stand still for a further period
of two months, and the workers will be temporarily laid off. In the meantime,
the company hopes that the pending issues related to taxes on energy production
and the environmental permits will be sorted out with the authorities, so that a
basis for continued operation can be established. The company also intends to
permanently reduce the number of employees if the decision is taken to restart
the industrial activities.

As a consequence of the events described above the supply of lignin raw material
to Borregaard's lignin plant in Spain, LignoTech Ibérica, was stopped on 1 July,
and the company has declared force majeure with respect to deliveries to its
customers until further notice. The management and Board of LignoTech Ibérica,
owned by Borregaard (60%) and Sniace (40%), will decide on necessary actions in
light of the new situation.

With normal supplies of raw material from Sniace, the deliveries of lignin from
LignoTech Ibérica are in the range of 60 - 65.000 tons. During the first half of
2013 the lignin production has been reduced by approximately 30% due to Sniace's
limited pulp production.

The financial performance of LignoTech Ibérica in recent years has been
influenced by the general economic conditions in Spain and other countries in
Southern Europe. In 2012 the direct and indirect impact on Borregaard's EBITA
from LignoTech Ibérica was close to NOK 20 million (100% consolidated). The
impact on net earnings (after tax and 40% minority interest) was about NOK 12
million. The book value of fixed assets in LignoTech Ibérica (100%) is at a low
level (NOK 7 million at 31 December 2012), and Borregaard's 60% share of equity
was NOK 10 million at 31 December 2012.

Borregaard has previously informed that the consequences of reduced supply in
Spain and other reductions elsewhere will be balanced by product mix changes,
price increases and higher production at other sites. The new situation in Spain
will, if it prevails for some time, have an impact on sales volume and
profitability. The above mentioned data regarding contributions and asset values
linked to the Spanish operations represent an indication of the magnitude.

Borregaard ASA

Sarpsborg, 25 July 2013

For further information, please contact:

SVP Organisation and Public Affairs, Dag Arthur Aasbø, mobile +47 918 34 108

This information is subject of the disclosure requirements pursuant to section
5-12 of the Norwegian Securities Trading Act.


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