Fire in silo at Borregaard

Fire in silo at Borregaard

In the evening of Friday 23 October, a fire and explosion took place at Borregaard’s production site in Sarpsborg, Norway.

The incident occurred in a silo used for resin seasoning of wood chips. No persons were injured, but there was material damage to the silo. As a result of the incident, a controlled shut-down of production was implemented.

Production has been gradually resumed during the weekend, and is expected to reach normal levels during the coming week. The resin seasoning silo will be out of operation for a prolonged period of time, which may affect some specialty cellulose grades. Other wood based product groups are expected to be largely unaffected.

The temporary by-pass of the resin seasoning step may affect productivity and lead to additional costs. Borregaard’s insurance coverage is expected to cover potential additional costs, as well as property damage, business interruption and consequential damages.