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Kemira selected as chemicals supplier for Botnia's pulp mill in Uruguay

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Press Release 4.10.2005


 

Kemira and Botnia have signed an agreement for the supply of chemicals to
Botnia's pulp mill in Uruguay. Kemira will build chemical plants in the site of
Botnia's pulp mill which is to be built in Fray Bentos, Western Uruguay.
Kemira's chemicals production will include sodium chlorate, chlorine dioxide
and oxygen. As the project proceeds, further evaluations will be made
concerning potential alternatives of producing hydrogen peroxide. Kemira's
investment will total approx. EUR 60 million. 

The project in Uruguay gives for the first time strong evidence of how highly
Kemira's customers value the possibility of having one supplier to deliver the
whole chain of pulp bleaching chemistry products to their pulp production. As
the second biggest pulp and paper chemicals producer globally, Kemira is in a
position to offer complete solutions for major pulp and paper producers all
over the world. With regard to the project in Uruguay, our comprehensive
competences were essentially completed through the acquisition of Finnish
Chemicals, says Kemira's CEO Lasse Kurkilahti. 

For the most part, future new production capacity in short-fibre pulp will be
built in South-America and Asia. These regions can supply the industry with
fibre raw material with fast growth capacity, e.g. eucalyptus which will grow
ready for harvesting in about eight years. Eucalyptus is especially suited for
non-coated fine paper and tissue paper qualities. 

The best technology available will be used in the construction of Botnia's and
Kemira's plants in Uruguay, and the plants will come up to all the strict
European environmental norms. Raw material procurement for the chemicals
production will be based on suppliers in the area. Botnia will be supplying
electricity, the main raw material of the plants. 

The chemical plants in Uruguay will be based on Kemira's own process know-how
for the most part, with mostly Finnish engineering and design. The construction
of the plants will employ max. 300 persons locally. When completed, these
plants will employ in all 25 persons, and they will be trained during the
project. 

Plant construction and foundations for equipment will be started in Uruguay
during the second quarter in 2006. The first installations of equipment have
been scheduled to start in mid-2006, with pulp production to be brought on
stream during the third quarter in 2007. 

For further information please contact:

Kemira Oyj
Jarmo Savolainen, Vice President, Bleaching Chemicals tel. +358 (0)40 559 6710

Oy Metsä-Botnia Ab
Timo Piilonen, Senior Vice President, Business Development tel +358 (0)50 598
9310

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