Vinings deal closed: KEMIRA EMERGING AS A GLOBAL LEADER IN PULP AND PAPER CHEMICALS THROUGH ACQUISITION OF VININGS INDUSTRIES

The deal between Kemira and J.P. Morgan Partners equity and venture capital company on the North American Vinings Industries has been closed. The U.S. competition authorities have also approved of the proposed deal. The deal price is USD 138 million or EUR 153 million.

With Vinings Kemira will expand from the position of strong European specialty chemicals supplier to be a major global supplier to the pulp and paper industry.

Kemira supplies Complete Solutions to the pulp and paper industry, including supplies of bleaching chemicals, pulp and specialty paper chemicals, retention and sizing agents, deposit control agents,coatings and water treatment chemicals. Vinings excels in process performance chemicals such as deposit control agents, defoamers, pigment dispersing agents and deinking chemicals. The products are for increasing productivity in the pulp and paper industry, and they enable higher use of recycled fibres in the process.

Vinings ranks among the leaders in its field in North America, with net sales of USD 150 million in 2000. Vinings employs 340 people.

Kemira operates eight production plants in North America. Hydrogen peroxide is produced in Maitland, Canada, for use in pulp bleaching, and the new Vinings production units are located in North America's most important paper producing regions: Marietta, West Oak and Midway (Georgia), Washougal (Washington), Fortville (Indiana) and Canada Prince George (British Columbia) and St. Catharines (Ontario). The company head office is located in Marietta near Atlanta. Kemira's North American operations employ 400 people.

This expansion in North America is a significant step for Kemira. Through this acquisition, Kemira will reinforce the company's strategic goal of becoming a globally preferred partner in pulp and paper chemicals. There are hardly any overlaps in the operations of Vinings and Kemira, and with the acquisition we will create sound synergy and add to the strength of both companies' businesses.

Pulp and paper chemicals are defined as one of Kemira's core growth areas. Globally the company is a major operator in bleaching chemicals, specialty paper chemicals and water treatment chemicals. With the closing of the Vinings deal Kemira's net sales in pulp and paper chemicals will exceed EUR 500 million per year.