Slide 1 - Hugin.info hugin

							    Finnish Chemicals
     History
         1937 Finnish Chemicals was fouded by ICI, Solvay and IG Farben
         1983 The company was acquired by Nokia
         1991 Finnish Chemicals became a 50/50 joint venture by combining the
              chemicals businesses of Nokia and UPM-Kymmene
         1996 The company was acquired by Erikem Luxembourg S.A.
         2000 Finnish Chemicals acquired Huron Tech Corp. in N. America

     Today
         A leading pulp bleaching chemicals company with a turnover of
         close to €250 million.
         Locations: Äetsä, Joutseno and Kuusankoski in Finland and
         Eastover (SC) and Augusta (GA) in USA
         Products: sodium chlorate (2/3 of turnover), sodium borohydride, caustic,
         chlorine dioxide, sodium hypochlorite, hydrochloric acid
         Main Customers: leading Nordic and North American pulp and paper
         companies
         Personnel 470 (Finland 356, USA 114)

1   February 7, 2005
    Kemira growing in Pulp and Paper Chemicals
Situation today in total               Situation after the acquisition
          Ciba                900 M€          Ciba               900 M€
          Akzo Nobel          750             Kemira             810
          BASF                730             Akzo Nobel         750
          Hercules            730             BASF               730
          Dow                 670             Hercules           730
          Kemira              570             Dow                670
          Nalco               550             Nalco              550
          Clariant            260             Clariant           260
          Erco                250             Erco               250
          Bayer               240             Bayer              240
     Bleaching Chemicals                  Bleaching Chemicals
          Akzo Nobel          480 M€          Akzo Nobel         480 Me
          Erco                250             Kemira             460
          Finnish Chemicals   240             Erco               250
          Nexen               230             Nexen              230
          Kemira              220             Solvay             220

2   February 7, 2005
    Production Sites




    Kemira

    Finnish Chemicals



3   February 7, 2005
    Kemira and Finnish Chemicals


                         Kemira      FC          K+FC          Global market
                                                                      B€
Sodium chlorate                                                       1,3
Caustic                                                               1,3
Hydrogen peroxide                                                     0,8
Sodium borohydride                                                    0,5
Sulphur chemicals                                                     0,8
Additives                                                             0,4
Water treatment                                                       0,4
others                                                                0,9
Total Bleaching Chemicals                                             6,4
                                      Pulp and Paper Chemicals tot.   20
                          strong
                       no presence




4   February 7, 2005
    Kemira / Finnish Chemicals Synergies

      More efficient production                  North American position strengthened
          favourable power supply situation          the leading pulp producers are
          increased volumes                          common customers

      Increase in sales                          Bigger growth opportunities
          full product portfolio for bleaching       on-site bleaching chemicals
                                                     production at pulp mills in emerging
      Improved customer service
                                                     markets (Lat. America, Asia, Russia)
          on-site production of bleaching
          chemicals                                  water treatment and paper chemicals
          full product portfolio
                                                 Strong partner in the Finnish Forest
      More efficient R&D                         Cluster
          total bleaching process
          management

      Improved raw-material situation
          water treatment chemicals
          paper chemicals



5   February 7, 2005