Kemira expands production of water treatment chemicals in China

HELSINKI, April 11, 2008 (Press Release) - Kemira will multiply its production capacity in water treatment chemicals in central China. The investment is done by Kemira Water Solutions (Chongqing) Co. Ltd , of which Kemira owns 80 percent of the stock capital. The company will invest in a new production line for the manufacturing of polyaluminium chloride, with a capacity of 20,000 tons per year. The company's current annual capacity for production of this chemical at the Chongqing plant is 6,000 tons. The expanded production line will be ready for use in the first quarter of 2009.

Kemira Water Solutions (Chongqing) serves mainly the water treatment needs of the Chongqing autonomous area in terms of both drinking water and industrial wastewater. The new investment allows for an expansion of the customer base in both the Chongqing area and the neighboring Sichuan province. The objective of the company is to invest in the future also in municipal wastewater treatment. Kemira has a strong commitment to strengthen its water treatment chemicals operation all over in Asia and this expansion is one logical step in implementing its strategy.

Kemira has been engaged in the production of water treatment chemicals in China since 1999, when the first production plant launched its operations in the city of Yixing, in eastern China's Jiangsu province. The joint enterprise in Chongqing launched its operations in May 2007. The main product of both production plants is polyaluminium chloride-based chemicals. With the investment in Chongqing, the local company's capacity for this product will grow to the same level as that of the Yixing plant near Shanghai. In addition to China, Kemira has water treatment chemicals' sales companies in several other Asian countries, with the annual water treatment chemicals' sales of the entire Asian region coming to approximately Euro 30 million.

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