KEMIRA INVESTS IN FORMIC ACID PRODUCTION IN OULU AND FINE CHEMICALS PRODUCTION IN KOKKOLA

Kemira will invest EUR 17 million in formic acid production in Oulu. The oldest production units will be partially replaced, and it will be possible to increase capacity by 20,000 t/a. The investment enables more flexible production of formic acid derivatives, where Kemira has most growth expectations. Kemira will also invest approx. EUR 1.9 million in developing the fine chemicals production unit in Kokkola.

Formic acid is the most simple organic acid, found naturally e.g. in ants. It is easily biodegradable and in many applications it replaces more harmful chemicals. The main applications for the use of formic acid are in feed preservation, textile and leather processing, and chemical and pharmaceutical processing.

The demand for formic acid is expected to grow especially in animal feed applications. Antibiotics in animal feeding are becoming restricted in Europe, and this trend is spreading to other continents. Formic acid derivatives are important replacers for feed antibiotics.

The demand for formic acid salts, formates, is also expected to grow significantly. Formates are used in e.g environmentally friendly heat transfer, de-icing and oil drilling.

Globally the market for formic acid comes up to approximately 400,000 tonnes annually, of which about one half in Europe. Kemira’s share of this figure totals approx. 13 per cent. The estimated annual growth rate for the business is about 3 to 4 per cent. Kemira ranks as the second largest supplier globally. Prospects for continued growth are good in neighbouring areas e.g. in the Baltic states, Eastern Europe, and Russia. The demand potential is big in North and South America as well.

The biggest producers in the formic acid business are BASF, Germany, Kemira, Finland, BP in Great Britain, and Perstorp, Sweden.

KEMIRA IMPROVES POSITION AS PRODUCER OF PHARMACEUTICAL FINE CHEMICALS

Kemira will invest EUR 1.9 million in revamping the Kokkola fine chemicals plant 1 to the production of pharmaceutical fine chemicals. The plant will be dedicated for pharmaceutical intermediates and operated according to GMP principles. Kemira will focus on custom-made products and partnership development.

Kemira will rely on its experience and success in custom manufacturing of agrochemicals when developing the pharmaceutical fine chemicals business. The company will also continue to strengthen its position as a preferred supplier to the agrochemical industry by continuously expanding its capability base of fine chemicals plants 2 and 3 on the Kokkola site.