KEMIRA TO BECOME A LEADING GLOBAL SUPPLIER OF PULP AND PAPER CHEMICALS THROUGH ACQUISITION OF AMERICAN VININGS INDUSTRIES

Kemira, a European leader in pulp and paper chemicals, is now becoming a globally leading specialty chemicals supplier to the pulp and paper industry through the acquisition of North American Vinings Industries. The price of the deal is USD 138 million (EUR 153 million).

Vinings is among the biggest suppliers of specialty pulp and paper chemicals in North America.

Vinings mainly operates in process performance chemicals such as deposit control agents, defoamers, pigment disperging agents and deinking chemicals. These products are used for increasing productivity in pulp and paper production and they enable higher use of recycled fibers in the process. The company's net sales in 2000 totalled approx. USD 150 million and the company employs 340 people.

Vinings operates seven production units located in North America's most important paper producing regions: Marietta, West Oak and Midway (Georgia), Washougal (Washington), Fortville (Indiana) and in Canada Prince George (British Columbia) and St. Catharines (Ontario). The company head office is located in Marietta near Atlanta.

In products, related applications, technologies and in expertise Vinings has a strong synergy with Kemira, when we think of our present products and our Complete Solution concept. Kemira is today a preferred partner to European pulp and paper companies. Through this acquisition, we seek to reinforce Kemira's other strategic goal, the position of a globally preferred partner. This acquisition makes a good example of creating sound synergy and adding to the strength of existing and acquired new businesses.

According to Vinings this integration into Kemira should be excellent news for their customers and employees. Customers want to deal with fewer suppliers that can offer a greater product range on a global basis. In addition, they want to work with the basic producers who have the ability to better control the cost, quality and development of new chemistries.

Kemira has defined its pulp and paper chemicals business as one of the company's core growth business areas. Globally the company is a major operator in bleaching chemicals, specialty paper chemicals and water treatment chemicals. The company's net sales in pulp and paper chemicals will now exceed EUR 500 million per year.

J.P.Morgan Partners, the private equity and venture capital arm of J.P.Morgan Chase % Co., was the majority shareholder in Vinings, and management owned a significant stake, as well. J.P.Morgan Partners is a globally-integrated firm that invests in a wide variety of sectors. It has a successful, long-term track record in the chemicals sector, in which it has invested over USD 800 million over the past 17 years. Vinings was advised by JPMorgan Securities, Inc.

Closing of the deal is subject to approval by competition authorities.

Outlook for the year 2002

During the current year Kemira's pulp and paper chemicals business has suffered from the downtrend in the customer industry. Next year the cycle is expected to improve, meaning higher demand for pulp and paper chemicals and imroving result. Vinings will for its part strengthen the group's position on the global market. It is also estimated that the water treatment chemicals business will develop favourably, and the group is set for expansion through strategic acquisitons also in this area. Positive developments in industrial chemicals are shadowed by the weak demand for titanium dioxide pigments and lower price levels. Profitability for titanium dioxide pigments during next year will remain below this year, in spite of a recovery which is expected to begin during the second half of 2002. On the whole, it is estimated that the group's operating income arising from the chemicals business will increase on this year.

In Kemira's paints business the integration of Alcro-Beckers into the Kemira Group is going well. Together with the continueing growth in demand in nearby markets, Kemira has a good reason to expect an improvement in result from its paints business on the current level.

Kemira Agro's business has experienced low demand owing to global difficulties in agriculture, e.g. floods and animal diseases. A rise in nutrient demand is, however, to be expected, and therefore we can expect an improvement in result on the current year.

On the whole Kemira expects next year's operating income to exceed this year's figures despite global economic difficulties. The group will publish its result for 2001 on February 11, 2002 at 9.00 a.m. Helsinki time.