KEMIRA TO BOLSTER PIGMENTS' SPECIALTY PRODUCTS BUSINESS WITH LARGE INVESTMENTS


Kemira has invested close to 8 million euros in its Pori, Finland plant for expanding its manufacture of specialty anatase products and for a new packaging system. The investments will be completed in December 2004.
Kemira Pigments in Pori is part of the Kemira Industrial Chemicals Strategic Business Unit.  Harri Kerminen, Executive Vice President of the Unit, regards the investments as a significant support to Pigments' strategic policy.
 
- The investments in the specialty products business are in accordance with Pigments' strategy, says Kerminen.  One of the central objectives of the strategy is to be the global leader and supplier of titanium dioxide products in selected product application areas, such as in the cosmetics, pharmaceuticals and food industries.
 
The expansion involves investing in new production machinery and a new packaging machine system. New facilities, separate from the rest of production, will be built for these purposes.
 
- Demands concerning the purity of products supplied to the food and drug industry, for example, are constantly being tightened, affirms Olli-Pekka Antinluoma, Vice President of the Specialty Products Unit.  With the aid of these investments, we can guarantee the required level of product purity also in the future.
 
Titanium dioxide pigments, the main product manufactured at Kemira Pigments, are used mainly as a raw material in paints, printing inks, plastics and paper.  Kemira Pigments' specialty products are sold especially to the cosmetics, pharmaceuticals, food, plastics and printing inks industries.  Kemira Pigments' longer-term goal is to significantly increase capacity and sales of specialty products in the future. Over 90 % of Pori's production go for export.  The plant employs about 800 people.
 
Pulp and paper chemicals, water purification chemicals as well as paints and coatings are Kemira's growth areas. Other major product areas include industrial chemicals and plant nutrients. Kemira has production facilities in over 30 countries worldwide and a workforce of 10 300.  Group turnover in 2002 was approx. EUR 2 600 million, of which Industrial Chemicals' share was approx. EUR 378 million.
 
For more information please contact:
 
Olli-Pekka Antinluoma, Vice President
Mobile + 358 50 546 5684
Specialty Products Unit
 
Harri Kerminen, Executive Vice President
Mobile + 358 500 817 230
Industrial Chemicals SBU