Chemicals

Akzo Nobel acquisition finalized by Kemira

Kemira has finalized the acquisition of the chemical business, which is necessary for the processing of the Akzo Nobel paper. This is a major operation, which reinforces the market position of Kemira, i.e. the chemical multinational listed at the Helsinki stock exchange.

The company aims at achieving a leading position within the Asian context, especially gaining in terms of a more efficient global production and new technological competences.

We interviewed Roberto Zulian, who is Business Development Pulp & Paper Emea manager at Kemira: «For the sake of clarity», explains the manager, «Kemira acquired the Akzo Nobel Paper Chemicals business. This is a significant step forward to reinforce our growth strategy in the Pulp & Paper sector.

The 100% take over worth 153 million Euro, which is in line with the Ebitda values of the chemistry sector, we now own the Akzo Nobel Paper Chemicals business, which will contribute to an additional turnover of about 243 million Eros (as of 2013). The takeover of Akzo Nobel in the paper industry has not only reinforced our market shares, but also our technological offer and presence on the territory thanks to the introduction of EKA sales organization within our company. The acquisition concerns 400 employees in total (who will add on to the 4,250 employees at Kemira), half of which are in the Apac (i.e. Asia-Pacific) area, 130 in Europe and an equal number in America. Furthermore, the agreement foresees the transfer of six production plants: four in the Asia-Pacific area (one in South-Korea, one in Indonesia, one in Thailand and one in Australia) and two between Italy and Spain. The geographical distribution of the plants acquired is in line with the objective of the company to reinforce its presence in terms of production in the APAC area with a technological offer that is comparable to the one of other regions, based on a complete range of chemicals capable of taking the lead in terms of innovation and efficiency in production costs».

Technological innovation

Mr Zulian concludes by saying that «thanks to this acquisition Kemira, which registered a 2.14 billion Euro turnover in 2014, foresees to further speed up its growth in terms of turnover and profits with an increase of its total market share in the paper sector and synergies worth 15 million Euro from now to 2016. From the viewpoint of mere technology, the acquired business concerns 40% sizing, 40% polymers for retention and clarification treatments and about 20% tissue and other special papers. The technological integration between the two business areas appears to be of key importance to increase profitability, especially if one considers that thanks to this takeover the paper chemicals acquired from Akzo will feature a complete vertical integration in their production, especially as regards polymers and sizing agents. These two technological integrations should bring about significant synergies, capable of giving a major contribution to both profitability and the ability of better competing on the global market».

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