Kemira Oyj: Kemira and Wilmar to form a 50-50 joint venture for the manufacture of alkyl ketene dimer (AKD) wax in China Kemira Oyj Press Release November 1, 2013 at 12.00(CET +1) Kemira Oyj and Wilmar International Limited have, through their subsidiaries, signed a joint venture (JV) agreement for the manufacture of AKD wax in China in two joint ventures. The JV entities in China will be owned 50-50 and will integrate the current facilities of Kemira in Yanzhou and the relevant Wilmar facilities in Lianyungang. Teaming up of the two major players underlines the long-term interest and determination of both companies to better serve all paper customers globally. The transaction is subject to fulfillment of certain conditions including merger clearances. Closing of the transaction is currently expected to take place in the third quarter of 2014. Kemira is a global, leading manufacturer of alkyl ketene dimer (AKD). AKD is a sizing agent, which impacts paper and board hydrophobicity and / or water resistance. Sufficient hydrophobicity is important for packaging materials and it improves paper and board runnability in a coating process at the same time. Water resistance also improves printability and dimension stability of the final product during the converting process. "Kemira is the leading producer of synthetic sizes for the paper and packaging board industry. The JV with Wilmar is an important step in the implementation of Kemira's paper strategy" said Petri Helsky, President of Kemira's Paper segment. "Through the JV, we will strengthen our position in the sizing market in Asia Pacific and, at the same time, demonstrate our strategic commitment to the paper industry. The JV will also secure the supply of key raw materials needed in the manufacturing process in China due to the backwards integration into the fatty acid chlorination technology", said Joe Chan, President, APAC region. Wilmar is a global leading producer of stearic acid, which is the key raw material for AKD production. "The JV, which will be an expansion down the oleochemicals value chain for Wilmar, will capitalize on Wilmar's advantage in sourcing of raw materials as well as on cost efficiencies from its integrated manufacturing operations. The JV will also enhance Wilmar's footprint in the Asia Pacific region", said Dave Cui Xinyu, Head of Wilmar Oleochemicals, China. For more information, please contact Kemira Oyj Leena Lie, Senior Vice President, Communications and Corporate Responsibility Tel +350 40 7457943 Tero Huovinen, Vice President, Investor Relations Tel. +358 10 862 1980 Wilmar International Limited Iris Chan, Corporate Communications Tel. +65 6216 0870 firstname.lastname@example.org Lim Li Chuen, Investor Relations Tel. +65 6507 0592 email@example.com About Kemira www.kemira.com Kemira is a global chemicals company serving customers in water-intensive industries. We provide expertise and chemicals that improve our customers' water, energy and raw material efficiency. Our focus is on pulp & paper, oil & gas, mining and water treatment. In 2012, Kemira had annual revenue of EUR 2.2 billion and around 4,900 employees. Kemira shares are listed on the NASDAQ OMX Helsinki Ltd. About Wilmar www.wilmar-international.com Wilmar International Limited, founded in 1991 and headquartered in Singapore, is today Asia's leading agribusiness group. Wilmar is ranked amongst the largest listed companies by market capitalization on the Singapore Exchange. Wilmar's business activities include oil palm cultivation, oilseeds crushing, edible oils refining, sugar milling and refining, specialty fats, oleochemicals, biodiesel and fertilizers manufacturing and grains processing. At the core of Wilmar's strategy is a resilient integrated agribusiness model that encompasses the entire value chain of the agricultural commodity processing business, from origination and processing to branding, merchandising and distribution of a wide range of agricultural products. It has over 450 manufacturing plants and an extensive distribution network covering China, India, Indonesia and some 50 other countries. The Group is backed by a multinational workforce of about 90,000 people. Wilmar's portfolio of high quality processed agricultural products is the preferred choice of the food manufacturing industry, as well as the industrial and consumer food catering businesses. Its consumer-packed products occupy a leading share in its targeted markets. Through scale, integration and the logistical advantages of its business model, Wilmar is able to extract margins at every step of the value chain, thereby reaping operational synergies and cost efficiencies. Wilmar remains a firm advocate of sustainable growth and is committed to its role as a responsible corporate citizen. Link to the release (.pdf) ------------------------------------------------------------------------------ This announcement is distributed by Thomson Reuters on behalf of Thomson Reuters clients. The owner of this announcement warrants that: (i) the releases contained herein are protected by copyright and other applicable laws; and (ii) they are solely responsible for the content, accuracy and originality of the information contained therein. Source: Kemira Oyj via Thomson Reuters ONE HUG#1739919
Kemira Oyj: Kemira and Wilmar to form a 50-50 joint venture for the manufacture of alkyl ketene dimer (AKD) wax in China
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