Kemira GrowHow's business operations have been reorganized into two business units with a strong focus on Europe in order to improve customer orientation and upgrade business efficiency. The units are Crop Cultivation and Industrial Solutions.
The Crop Cultivation business unit includes Kemira GrowHow's fertilizer business, with the exception of water-soluble specialty fertilizers, which will remain part of the Kemira Group even in the event of the listing of Kemira GrowHow. The Industrial Solutions business unit comprises the feed phosphates business and other industrial process chemicals.
An extraordinary general meeting has elected Mr Ossi Virolainen, the former CEO of Avesta Polarit, as the chairman of the company's Board of Directors and Mr Lauri Ratia, the managing director of Lohja Rudus Oy, as vice chairman. The following persons were elected as members: Ms Sari Aitokallio, CFO of Sponda Plc, Mr Arto Honkaniemi, industrial counsellor at the Ministry of Trade and Industry, Ms Satu Raiski, executive director of Arla Foods Finland, and Mr Esa Tirkkonen, deputy CEO of Kemira Oyj. The election of the Board is contingent on the realization of the listing of Kemira GrowHow.
Mr Timo Lainto, executive vice president, Kemira GrowHow, has been appointed as vice president, Crop Cultivation business, and Mr Antti Orkola, who was previously responsible for the operations of Kemira GrowHow's Process Chemicals unit, has been appointed as vice president, Industrial Solutions business. In addition, Mr Kaj Friman, Group treasurer, Kemira Oyj, will be appointed as the deputy managing director and CFO of Kemira GrowHow if the listing of the company is carried through. Heikki Sirviö will stay on as Kemira GrowHow's president.
Current Outlook
In June 2004, there was a technical failure in one of the nitric acid facilities at the Ince production facility which has reduced finished products capacity by 50 percent. Production at the facility is expected to return to its normal level by end of September 2004. Effects of the reduced production at the Ince production facility is currently estimated to be approximately EUR 9 million in lost profit. As a result of the generally lower demand during the third quarter of the year due to seasonality, the Company's operating profit is typically weak for the third quarter of the year. The operating profit of Kemira GrowHow for the third quarter of 2004 is expected to be negative due to the reduced production at the Ince production facility.
World grain stocks are currently on a low level which is expected to support grain prices and ultimately also fertilizer prices. European fertilizer prices have increased compared to 2003 which supports the profitability of the Crop Cultivation business unit. Energy markets have continued to be unusually volatile and, therefore, there is some uncertainty related to natural gas market price which in turn mitigates the positive effects of the fertilizer price increases. Feed phosphate markets are expected to recover following phosphoric acid world market price increase which will improve profit of the Industrial Solutions business unit. Kemira GrowHow's sales for 2004 are expected to remain at the 2003 level whereas operating profit for 2004 is expected to improve compared to 2003.
The information contained herein is not for publication or distribution into the United States. The material set forth herein is for informational purposes only and is not intended, and should not be construed, as an offer of securities for sale into the United States. The securities described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended, or the laws of any state, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable state laws. There is no intention to register any portion of the offering in the United States or to conduct a public offering of securities in the United States.
The information contained herein shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of the securities referred to herein, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration, exemption from registration or qualification under the securities law of any such jurisdiction.
For additional information, contact:
Kemira Oyj, tel. +358 (0) 10 8611
Mr Kaj Friman, Group Treasurer, tel. +358 (0)10 862 1704,
gsm +358 (0)50 62 626
The press release with tables can be downloaded from the following link:
