KEMIRA INCREASES OWNERSHIP IN ITS CHINESE JOINT VENTURE

KEMIRA INCREASES OWNERSHIP IN ITS CHINESE JOINT VENTURE COMPANY

Kemira Chemicals increases its shareholding in the Chinese company Kemwater (Yixing) Co., Ltd from the original 49% up to 60% by purchasing 11% of the company’s shares from Yixing Purifying Agent Plant. After the transaction the holding of Yixing Purifying Agent Plant stands at 29% of the shares of the joint venture company. The other shareholder Finnfund in Helsinki will keep to their original holding of 11% in the company.

Kemwater (Yixing) Co., Ltd started its operation on 1 September 1999 in Yixing city located in the Jiangsu Province in China. Until then the Chinese shareholder Yixing Purifying Agent Plant had been in charge of the production and marketing of water treatment chemicals. The turnover of the joint venture company is approx. CNY 25 million (over EUR 3 million) in 2000. The company employs 120 people.

The main products are inorganic coagulants like different qualities of polyaluminium chloride and ferric chloride. Other products are e.g. an organic polymer grade which can be used both as a colour removal agent for wastewater as well as in certain paper making applications. Kemwater (Yixing) Co., Ltd ranks among the three largest manufacturers of polyaluminium chloride in P.R. China.

Kemira Chemicals’ strategic business unit Kemwater is the world’s largest producer of coagulants for water treatment. Kemira Chemicals is part of the Kemira Group. In addition to municipal and industry water treatment, Kemwater´s other main customer groups are the pulp and paper industry and other industries. The net sales were EUR 697 million in 1999.
For further information, please contact:

Kemira Kemi AB, Helsingborg, Sweden
Kemwater BU Overseas
Bernt Renehov, Tel. +46 42 171154
Manager

Kemwater (Yixing) Co. Ltd, Yixing, China
Juha Kuikka, Tel +86 510 7062090
Deputy General Manager