Kemira Chemicals Oy's Swedish subsidiary Kemira Kemi AB acquires 15% of the newly formed American company Kemiron Companies, Inc. The net sales of the company are estimated at EUR 72 million (USD 65.8 million). Kemiron Companies, Inc will acquire the water treatment business of Pioneer Chemicals to coincide with this deal.
Pioneer has been in possession of the rights to produce and sell Kemira Kemwater's water treatment products on the North American market since 1995. With the acquisition of Pioneer Chemicals' water treatment business, Kemiron Companies, Inc. will be the biggest US producer of full line coagulants, ie. all iron and aluminium salts. The company has production sites in Bartow (FL), Mojave (CA), Fontana (CA), St. Louis (MO), Savannah (GA), and Spokane (WA). The Savannah and Spokane plants will be acquired from Pioneer.
With this deal Kemira will gain access to the world's biggest single market for water treatment chemicals. The acquisition is in line with the strategy of the Kemira Group, whereby pulp and paper chemicals, water treatment, and the paint industry have been recognized as the Group´s future growth areas.
"Strengthening the position of Kemwater in North America much in the same manner as we have done in Europe has been on the top of our agenda for a long time", says Kemwater's Executive Vice President Lennart Johansson. "We consider Kemiron to be our ideal partner in developing our water treatment concept in the US."
Bernt Renehov, Vice President of Kemwater business unit Americas, says: "The US market is very important for Kemwater, not only because of its size, but also because USA is in the forefront when it comes to developing new technologies for water treatment - a development that Kemwater wants be part of."
Kemwater is the world's biggest producer of coagulants for water treatment with production plants in about 30 countries.
Kemira Chemicals Oy produces and sells products for the pulp and paper industry, water treatment, the detergent and the food industry, other industries and road maintenance. Kemira Chemicals is part of the Finnish Kemira Group with net sales in excess of EUR 2500 million and almost 10,000 employees.