Ilim Group and AkzoNobel Chemicals create joint venture for operating sodium chlorate production plant in Koryazhma, Russia

ST PETERSBURG, Russia, Dec. 16, 2011 (Press Release) - Ilim Group and AkzoNobel Chemicals International BV (associated company of AzkoNobel - one of the world's largest producers of specialty chemicals) signed a long-term agreement. According to the agreement, Ilim Group and AkzoNobel Chemicals International BV would create joint venture regarding the sodium chlorate production plant of Ilim Group located in Koryazhma, Arkhangelsk oblast. This plant will be operated by AkzoNobel.

This agreement was based on AkzoNobel's intentions to invest in modernization and up-grade of the plant. AkzoNobel will bring its chemical manufacturing and technology expertise into this partnership. According to signed document the plant would supply Koryazhma branch of Ilim Group with chemicals needed for pulp production, and Ilim Group would provide needed energy resources for plant's operations.

"We are glad that our cooperation with one of world's leading chemical producer is reaching truly new level. Ilim is the leading pulp-and-paper company in Russia, so it was crucial for us to find a strategic partner who would interested in long-term development of our non-core asset. I am sure that our cooperation will be mutually beneficial", states Paul Herbert, CEO Ilim Group.

"We are delighted in now becoming a local producer of bleaching chemicals in Russia, as this gives us an extended platform for future growth in both pulp and paper chemicals in the country", says Byron Smith, Vice President Eka Chemicals, Pulp and Paper Europe, division of AkzoNobel which specializes in chemicals for pulp-and-paper industry.