KEMIRA AGRO PLANS CLOSURE OF NITROGEN FERTILISER PRODUCTION IN ROZENBURG, HOLLAND

Kemira Agro plans to close its nitrogen fertiliser production units in Rozenburg, the Netherlands before the end of the year. The plans will involve approximately 220 persons and negotiations with the local Employee Works Council will begin immediately. The overall cost of the closure is estimated to be about EUR 80 Million.

The plan is a part of the earlier announced overall restructuring process within Kemira Agro's nitrogen fertiliser business which is expected to be completed by the end of the year.

The closure plan involves the following production capacity at Kemira Agro Rozenburg site: ammonia (550,000 t/a), urea (230,000 t/a), nitric acid (400,000 t/a), CAN (550,000 t/a) and UAN (100,000 t/a).

The closure also includes warehousing and distribution operations related to fertiliser production in Rozenburg. Specialty liquid fertiliser production (50,000 t/a) and the ammonia terminal will continue operations in Rozenburg. The Dutch sales organisation will also remain in operation, and customer deliveries will be carried out from other Kemira sources.

The reason for the closure is the low level of profitability in the European fertiliser industry including Kemira Agro Rozenburg BV in recent years. There is still excessive overcapacity in nitrogen fertiliser markets, a gradual decrease in demand, and the consistent large amounts of foreign imports. The price of nitrogen raw materials, i.e. natural gas, has undergone a sharp increase.

Kemira Agro had previously decided on the closure of fertiliser production in Pernis, Holland.

Kemira Group subsidiary Kemira Chemicals Oy maintains hydrogen peroxide and water treatment chemicals production in Rozenburg, both of which will remain unaffected by the closure of fertiliser production.