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MOSCOW (MRC) -- Kemira has received
final authority permits and closed the deal announced on September 29, 2017,
said the company.
Kemira has formed a joint venture with an AKD producer
in China. Kemira forms a joint venture – Kemira TC Wanfeng Chemicals Yanzhou –
with Shandong Tiancheng Wanfeng Chemical Technology.
NewCo strengthens
Kemira’s position as a leading global supplier for the Pulp & Paper
industry. NewCo will mainly produce AKD wax and its key raw material fatty acid
chloride (FACL). AKD wax, where the main component is based on renewable raw
material, is a sizing chemical used in board and paper manufacturing to create
resistance against liquid absorption. Kemira is the global market leader in
sizing chemicals.
Through the backward integration, Kemira expands its
position in the value chain. NewCo will provide a high-quality AKD wax and will
be globally the largest AKD wax manufacturing unit significantly improving
Kemira’s AKD wax capacity. NewCo’s site is located in the same chemical park
with Kemira’s first AKD wax plant in Yanzhou, China and the proximity of the two
sites results in operational synergies. The NewCo site also offers growth
opportunities for other relevant chemicals.
In addition, NewCo will
produce polyaluminum chloride (PAC) which is a coagulant for water treatment.
NewCo will start the production of chemicals in the second half of 2019 after
necessary investments and the ramp-up phase are completed.
“The joint
venture is a good strategic fit. We strengthen our position in the market with a
quality asset and secure our supply of the key raw material for AKD wax. With
the newly built site, we ensure our capacity utilization and support our
customers better with our global delivery capability. At the same time, this
enables us to grow even faster in APAC”, says Kim Poulsen, President, Pulp &
Paper.
Kemira has 80% and TC Wanfeng 20% of NewCo. Value of the
investment for the 80% share is around EUR 55 million and Kemira has an option
to acquire TC Wanfeng’s 20% in the coming years with pre-defined
conditions. |
