We help customers create more value by applying our expertise where water meets chemistry.
We focus on seeking growth particularly in the pulp, paper, oil, gas, and mining industries by developing chemical products and innovations differentiating Kemira against the competition. By the end of 2020, Kemira aims to become a leader in the industry and technology in the chosen target markets. Our vision is to provide the most valuable expertise and chemicals for water-intensive industries, which is also crystallized in our promise, “Where water meets chemistry”.
Kemira provides expertise and tailored combinations of chemicals for water-intensive industries. We focus on pulp & paper, oil & gas, mining and water treatment to improve our customers' water, energy and raw material efficiency.
Paper and Oil & Mining segments are targeting profitable, above-the-market revenue growth through differentiated product lines, e.g. polymers, sizing and other process chemicals. Municipal & Industrial segment will focus on profitability improvement and on maximizing cash flow generation. Kemira increases the share of capital expenditure used for differentiated product lines in order to support the targeted growth. With commodity products, such as coagulants and bleaching chemicals, the focus is on maximizing profitability and cash flow.
Mature markets continue to be important for all segments, whereas the focus in the emerging markets is on selective expansion. In the emerging markets, China and Indonesia are the key markets for the paper wet-end chemistry. Brazil and Uruguay will remain important markets for the bleaching chemicals used in pulp industry. In addition to the mature markets, the Oil & Mining segment will focus largely on Argentina, Brazil and Middle East when it comes to oil and gas, and on Chile, Peru and Africa when it comes to mining. Municipal & Industrial remains mostly on the mature markets for the time being, but we monitor the development of legislation and business opportunities in the emerging markets closely.
Research and development is a critical enabler for organic growth in Kemira and provides differentiation capabilities in water quality and quantity markets. Kemira's R&D spend will be increased for process improvement innovations in paper, oil & gas and mining industries, as well as in the related product lines. We aim at achieving 10% of our revenue from innovation sales in 2016, that is sales from new products or products to new applications launched within the past five years.
Continuous efficiency improvement will remain the key enabler for the successful strategy implementation.
Medium term financial targets for 2017: above-the-market revenue growth, EBITDA margin 14-16% and gearing level <60%.