Eka Chemicals to close sodium chlorate plant in Norway

BOHUS, Sweden, April 1, 2009 (Press Release) - In order to meet the current market situation in the pulp and paper industry, Eka Chemicals has launched a program to optimize sodium chlorate production in Europe which will result in the permanent closure of the plant in Mo i Rana, Norway.

Further steps in the program will ensure Eka's leading market position in Europe and will also involve reallocating sodium chlorate capacity. The program aims at achieving lower total costs, reduced environmental impact and improved economies of scale.

"Closing the Mo I Rana plant in Norway is an unfortunate but necessary step which means we will regrettably lose 31 employees who have performed extremely well," said Johan Landfors General Manager for Eka Chemicals in Europe. "But circumstances dictate that we have to make changes in order to maintain our long-term competitiveness and continue to provide a more sustainable offer to our customers."

Employees and unions have been informed about the restructuring and a support plan created for the Norwegian organization will now be implemented.