KEMIRA AND KERR-MCGEE FINALISED SALE CONTRACT ON KEMIRA PIGMENTS TITANIUM DIOXIDE PIGMENT PLANT IN THE U.S.

The sale contract between Kemira and the American Kerr-McGee Chemical LLC on Kemira’s TiO2 business has been finalised for the part of the U.S. plant representing about 70% of the entire sale object. The Savannah plants were transferred to Kerr-McGee effective 1 April 2000.

The finalisation of the sale of titanium dioxide operations in Rotterdam, Holland to Kerr-McGee still awaits completion of local co-operative schemes and the approval of the fair trade authorities.

In the United States the purchase object was Kemira Holdings Inc., and in Holland, Kemira Pigments B.V. The total purchase price for the deal is approximately EUR 400 million on a debt-free, cash-free basis. Net sales of the two purchase objects was for 1999 approximately EUR 330 million and they did not have any significant impact on Kemira Group operating income. The pre-tax gain from the transaction is approximately EUR 130 million.

The Kemira Pigments plant in Savannah, Georgia has a production capacity of 145,000 tonnes per annum, and employs a staff of 640. The Rotterdam plant in Holland has a capacity of 56,000 tonnes per annum, and employs a staff of 240.

Kemira seeks continued growth in pulp and paper chemicals, water treatment chemicals, paints and coatings. Core areas also include specialty fertilisers and industrial chemicals.

The profitability of Kemira Pigments plant in Pori is good and the site will continue to operate as an independent company within the the Kemira Group. In the future the Pori plant will be part of the Group’s industrial chemicals business. The Pori plant specialises in, among other areas, printing ink pigments and specialty pigments (such as microcrystalline grades). The most part of the sales goes to the coatings industry. The plant has a production capacity of 120,000 tonnes per annum, and employs a staff of approximately 800.

Kerr-McGee is a global energy and inorganic chemicals corporation, with total assets of approximately USD 6.5 billion, with headquarters in Oklahoma City.