STRATEGIC PARTNERSHIP AGREEMENT SIGNED BETWEEN KEMIRA AGRO OY AND JSC ACRON


Kemira Agro Oy, Finland and JSC Acron, Russia have signed an agreement to create a "Strategic partnership regarding mineral fertiliser markets in CIS and the Baltic countries". The ceremony took place on 18 April, 2000 in Moscow. The document was signed by Mr. O.V. Valters, Chairman of the Board of JSC Acron, and Mr. T. Pihlava, CEO of Kemira Oyj, also acting as Chairman of the Board of Kemira Agro Oy.

JSC Acron and Kemira Agro Oy have cooperated for several years on a number of issues. For instance, Kemira Agro's local companies in the different Baltic countries have played an important role in sales and distribution of JSC Acron's fertilisers. The present agreement between the parties will cover the importing of the fertilisers produced by JSC Acron and marketing of them together with Kemira Agro's own, traditionally marketed product range in the growing Baltic markets.

The new agreement will form a solid foundation for uniting the strengths and experience of both companies in the fertiliser business in this particular market area. A joint Finnish/Russian company, JSC KEMIKRONA Ltd. has been established in Russia already to implement the cooperation. In Russia the partners will jointly promote the sales of Kemira Agro's specialty fertilisers and investigate the possibility of setting up local production of 100% water-soluble fertilisers for greenhouse cultivation.

Kemira Agro Oy is one of Europe's largest producers of specialty fertilisers for crops and horticulture. Their net sales in 1999 totalled EUR 1,015 million with a staff of 2,800.

JSC Acron is the largest producer of nitrogen and complex fertilisers in Russia. Their net sales in 1999 were EUR 293 million and the operating profit was EUR 45 million.