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Lawter and Sunpine Constructs Tall Oil Rosin Production Facility in Piteå, Sweden

July 4, 2014

Lawter, a subsidiary of Harima Chemicals Group, Inc. and Sunpine AB completed the agreement, announced on November 7, 2012, to build a Tall Oil Rosin production facility in Piteå, Sweden. With the closure of the agreement, Lawter has now become a shareholder in Sunpine.

"It is great that we have completed the agreement and we look forward to receiving the first rosin in the second half of next year at the Lawter facility in Kallo, Belgium. This arrangement will strengthen Lawter's position as a reliable supplier for the long term with a stable high quality and renewable raw material", said Nob Makino, CEO, Lawter.

A team of SunPine and Lawter engineers have jointly worked the past 1.5 years with a specialized engineering firm to model and test the optimal configuration for the integrated bio-refinery. A series of pilot testing has verified the modeled concept, therefore final project planning, will commence immediately.

"We are very pleased about the contract with Lawter. Not only will it give us another leg to stand on; it will also yield a very significant investment and 10 new jobs for our Piteå facility at Haraholmen. We're glad that the manufacturing of this new product, rosin, makes us less dependent on political decisions. This is an important step in upgrading the Piteå facility to a true crude tall oil biorefinery." said Magnus Edin, CEO for SunPine.

It is expected that the new bio-refinery will be operational in the second half of 2015. At that time, SunPine will be producing three different products: Raw tall diesel - a raw material used in the production of renewable diesel, rosin - a raw material used in the production of derivatives, including printing ink and adhesives, and tall oil pitch - an energy product used in the paper industry.

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