1/16/2007 - Press release

Kemira expands its water treatment business in Brazil

Kemira Water Solutions Brasil Ltda has signed an agreement to acquire the shares of two companies conducting the coagulant business of Dalquim Industria e Comercio Ltda. Dalquim is one of the leading manufacturers of aluminum based coagulants in the south of Brazil. The revenue of the coagulant business is approx. EUR 12 million. The agreement is subject to all necessary regulatory approvals being granted.

The target companies are located in the south of Brazil and have two production units. Main customer base is the paper industry and municipalities for potable and wastewater treatment. The company will be targeting the fast expanding paper industry and potable and waste water treatment sector in the Southern states of Brazil.

The acquisition will fit extremely well in Kemira’s strategy to enhance its position and mutual synergies as a world leader in chemicals supply for both pulp&paper and water treatment customers on fast growing emerging markets.

Kemira Kemwater is today active via Kemwater Brasil S.A., with production in the Bahia region (North East of Brazil) and in the Sao Paulo state. The revenue of the business is approximately EUR 11 million. With this acquisition Kemira will significantly broaden its current product portfolio in Brazil and gain strong geographical presence in the southern Brazilian market.

Kemira is the world’s leading supplier of inorganic coagulants and ranks third in water treatment polymers. The company offers water treatment and sludge treatment solutions to municipal and private water treatment plants and to industry. The revenue of Kemira’s water treatment chemicals business area is approximately EUR 700 million and the number of staff slightly more than 2,000. Kemira has water treatment chemicals business in over 30 countries.

For further information, please contact:

Kemira Oyj
Kemwater Business Area

Mats Jungar, President, tel. +358 (0)10 862 1028, Mobile +358 (0) 40 707 4943

Gunnar Smith, Vice President Kemwater Overseas, tel. +46 (0) 42 17 16 65, Mobile +46 (0) 737 19 11 65

Fred Schuurman, MD Kemwater Brasil S.A., tel. +55 (11) 4393-4707, Mobile +55 (11) 9429-3847

Kemira is a chemicals group that is made up of four business areas: pulp and paper chemicals, water treatment chemicals, performance chemicals and paints. Kemira is a global group of leading chemical businesses with unique competitive position and a high degree of mutual synergy.

In 2005, Kemira recorded revenue of around EUR 2 billion and had a payroll of 8,000 employees. Kemira operates on all continents, in 40 countries.