KEMIRA TO ENTER INTO CO-OPERATION WITH THE UKRAINIAN COMPANY SUMYKHIMPROM IN THE FIELD OF WATER TREATMENT

Sumykhimprom, located in Sumy in the North-East of the Ukraine, is a significant company in the chemical industry. Its products include plant nutrients, paints, titanium dioxide pigments and coagulants used in water treatment.

In accordance with the agreement of co-operation, Sumykhimprom will construct a facility for the manufacture of iron-based coagulants which is to be located in Sumy. The know-how required for the basic engineering, production processes and applications will be provided by Kemira's strategic business unit, Kemwater.

The facility is expected to begin its operations in the middle of next year. It will obtain the main raw material used in its production processes from the titanium dioxide processes of its co-operation partner, Sumykhimprom.

"The signed agreement represents the first step in a long-term relationship of co-operation, in which our aim is to achieve a close partnership within the Ukraine", says Vice President Stig Bache from Kemwater.

The move to the Ukraine is a continuation of Kemira's active enlargement in Central and Eastern Europe. The deal is in line with the Kemira Group strategy whereby water treatment is listed as a growth area. Kemira is the world's largest producer of coagulants for water treatment, and Kemwater has 30 production facilities world-wide.

In addition to water treatment, Kemira's other areas of growth are pulp and paper chemicals and paints, with other areas of focus being specialty fertilizers and industrial chemicals. The Kemira Group has net sales of EUR 2,486 million (2000) and 9,644 employees.