ACRL.L Regulatory News (ACRL)

2nd September 2016

Accrol Group Holdings plc (the "Company" or "Accrol")

New manufacturing facility in Leyland, Lancashire to support the Company's growth plans

Accrol Group Holdings plc, the AIM listed leading independent tissue converter, is pleased to announce that it has reached an agreement with Lancashire County Developments (Property) Ltd (the economic development arm of Lancashire County Council) to lease a new 168,000 sq. ft. facility in Leyland, Lancashire. The new facility will support the Company's continued growth with both the Discounters and the Major Multiples in the UK.

The new property will initially house two high speed tissue converting lines purchased by Accrol in April 2016 and also provide finished goods warehousing space, with potential to add two further converting lines if required.

Installation and commissioning of the first two lines will take place during late 2016, with manufacturing planned to start in January 2017. The project is expected to create around 80 new jobs.

Commenting on the new facilities, Steve Crossley, Accrol's CEO said:

"This additional capacity underlines our strategy of investment ahead of growth in state-of-the-art machinery and facilities. It will position Accrol to benefit from underlying organic growth in the Discount sector and enable further growth with the Major Multiples. At the same time, we will focus on improving efficiency at the existing Blackburn sites to further increase our total capacity."

Notes to Editors

Accrol manufactures toilet rolls, kitchen rolls and facial tissues as well as other tissue products at the Company's 350,000 sq. ft. manufacturing, storage and distribution facility in Blackburn, Lancashire. Accrol currently manufactures approximately 16 million units per week and supplies some of the UK's largest retailers, providing both Accrol branded and Private Label products.