FERNANDINA BEACH, Fla. -- The definitive agreement regarding the establishment of a new lignin operation at the Fernandina Beach site in Florida has now been completed and signed by both parties, Rayonier Advanced Materials and Borregaard, the companies announced this week.

A final decision by the boards of both companies on whether to proceed with the project is anticipated in mid-2016, after completion of final engineering, securing of local and state incentives, refinement of the capital cost structure, and applicable permit approvals by applicable state and local agencies. The new company, LignoTech Florida LLC, is expected to commence operations in the first quarter of 2018, after completion of the first investment phase.