KEMIRA ACQUIRES SWISS VAN BAERLE PAPER CHEMICALS BUSINESS


Kemira has signed an agreement to acquire the paper chemicals business of van Baerle located in Münchenstein, Switzerland. The acquisition includes both rosin sizes and polymers. The acquired paper chemicals business represents sales of about EUR 3.4 million (CHF 5.2 million) per year, mainly achieved in Switzerland and Germany. The transaction is subject to the approval of the German competition authority and is expected to become effective beginning of October 2001.

Production of rosin sizes will be transferred to Kemira Chemie Ges.mbH in Krems, Austria, and polymers will be toll manufactured in Münchenstein during a transitional period, after which production will be moved to Kemira. All former van Baerle-customers will be served by Kemira Chemie GmbH located in Hanau, Germany.

Van Baerle has been traditionally a leading supplier of paper chemicals for the Swiss paper industry. Paper chemicals represent approximately 14% of the corporation's overall operations. Other operations include silicates and hygiene products, in which van Baerle will continue to focus its efforts.

The acquisition reinforces Kemira's market position in Central Europe as the provider of various paper sizes and other specialty paper chemicals for the Swiss and German paper industry. The acquisition also includes the transfer of highly valuable application technologies for specialty polymers to Kemira. Paper chemicals Sales Manager, Dr Egbert Elble will transfer from van Baerle to the employ of Kemira Chemie GmbH in Hanau, Germany.

Paper sizes are used to improve printability and water resistance of paper and board. Polymers are used in various specialised paper manufacturing applications and in retention and water treatment.

Kemira has designated its pulp and paper chemicals operations as one of its core growth areas. The corporation is a leading global supplier of bleaching chemicals and speciality paper chemicals for wet-end and water treatment applications. The net sales of the pulp and paper chemicals business is EUR 350 million.

Kemira's net sales for 2000 totalled EUR 2.486 million, and the company employs a staff of 9,644 employees.