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Rayonier Advanced Materials Announces Lignin Partnership Plans with Borregaard ASA
“This partnership between
Lignin, a natural component of wood, is a co-product of RYAM’s cellulose specialties manufacturing process and is currently used for its energy value by the facility. The planned JV would process the lignin into higher-value products that provide environmentally friendly alternatives to petroleum-based chemicals used globally in construction, agriculture and other industrial applications.
It is anticipated that the project will be completed in two phases over
five years. The parties estimate an aggregate capital investment of
Completion of the JV is subject to board approval by both companies and conclusion of definitive agreements, as well as final engineering, refinement of capital estimates, and obtaining required permits and other approvals.
“Pursuing this opportunity with the leader in lignin-based chemistry significantly enhances the prospects for success while reducing operational and market-based risk,” stated Boynton. “As we have stated previously, our focus in 2015 is to take advantage of the value of our co-product streams, reduce our costs and working capital, optimize our assets and grow our business. This opportunity is one example of how we expect to deliver on these goals.”
Certain statements in this document regarding anticipated financial, business, legal or other outcomes, including statements relating to future performance, outcomes, events, developments or financial or operational benefits, performance or results, are “forward-looking statements” made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and other federal securities laws. These forward-looking statements are identified by the use of words such as “may,” “will,” “should,” “expect,” “estimate,” “believe,” “intend,” “anticipate,” “forecast” and other similar language. However, the absence of these or similar words or expressions does not mean that a statement is not forward-looking. While we believe that these forward-looking statements are reasonable when made, forward-looking statements are not guarantees of future performance or events and undue reliance should not be placed on these statements. Although we believe that the expectations reflected in any forward-looking statements are based on reasonable assumptions, we can give no assurance that these expectations will be attained and it is possible that actual results may differ materially from those indicated by these forward-looking statements due to a variety of risks and uncertainties.
Such risks and uncertainties include, but are not limited to: our ability to complete negotiations for the JV and enter into definitive agreements on terms mutually acceptable to the parties; fulfillment of various business, legal, financial and operational conditions precedent to entry into and commencement of the JV; the ability of the JV to achieve anticipated and forecasted returns and other expected benefits; risks relating to the construction and operation of the JV’s manufacturing facilities; pricing and acceptance of the lignin produced by the JV in the relevant markets, as may be impacted by supply and demand and other factors; and other future developments and changes in the lignin markets to be served by the JV.
Other important factors that could cause actual results or events to
differ materially from those expressed in forward-looking statements
that may have been made in this document are described or will be
described in our filings with the
Rayonier Advanced Materials
Russell Schweiss, 904-357-9158
Beth Johnson, 904-357-9136