KEMIRA IS INVESTING EUR 21 MILLION TO INCREASE TITANIUM DIOXIDE PIGMENT PRODUCTION IN PORI

Kemira is raising the production capacity of titanium dioxide pigments to 130 000 tpa. The total cost of the investment will be EUR 21 million. The new capacity will be fully available during the year 2003. The current TiO2 production capacity of Kemira’s Pori plant is 120 000 tpa.

The strategy of Kemira’s titanium dioxide business is based on specialization and organic growth. The company’s long-term target is to raise its titanium dioxide production capacity to 150 000 tpa.

Following the general economic growth, the demand for titanium dioxide pigments is expected to grow 2.5 to 3 per cent annually. TiO2 producers have been raising capacities of late by expanding their current plants. Also Kemira is raising TiO2 production by debottlenecking at the Pori plant. The current infrastructure is being utilized instead of building a new plant which would be clearly more expensive.

White titanium dioxide pigments are produced at Pori via the sulphate process. Ilmenite ore is one of the main raw materials and the production process is multi-staged. The capacity increase is made by expansions to several process stages. The cornerstones of the investment are also safety at work, friendliness to environment and an efficient use of energy.

The operating income of Kemira’s titanium dioxide business last year was EUR 54 million. The business unit employs 800 people. Kemira’s main customers of titanium dioxide pigments are in the paint, plastics, paper and printing ink industries. The Pori plant’s share of the printing ink pigments is significant and the company is one the world’s leading suppliers in this end-use segment.