Annual Report 1999 - Kemira

in a Chinese company that manufactures
polyaluminium chloride. By way
of this investment we gained a foothold
in the growing Chinese market
for water treatment chemicals. The
new company, Kemwater (Yixing) Co.
Ltd will be developed in step with
growth in the market.
Kemwater and the City of Helsinki
established a joint service company in
the water treatment field. Kemwater
has a 51 % stake in the company.
Industrial Chemicals. The unit continued
to concentrate on developing
ECOX percarbonate grades and on ensuring
its ability to produce this product.
GROWTH HINGES ON RESEARCH
AND DEVELOPMENT
Research and development are the key
condition for the continuing growth of
Kemira Chemicals. At Kemira Chemicals,
research is organized under the
business units, which direct research
in line with market demands. The research
priority is projects run by or for
Pulp & Paper Chemicals and Kemwater.
Each year Kemira Chemicals
spends about 2.5% of its net sales on
research and development. The most
important research results have centred
on speciality chemicals for the paper
industry and the development of
pulp bleaching. At Kemwater a
number of new iron-based coagulant
solutions have been developed for water
treatment plants. The Krepro waste
water sludge recycling system was also
developed further.
GOOD FUTURE PROSPECTS
Kemira Chemicals wants to offer total solutions to its customers in the pulp and
paper industry. A part of this integrated programme is hydrogen peroxide, which
is produced at Kemira Chemicals’ plants in Europe, North America and Asia.
The economic outlook for 2000 is by
and large positive. The rise in the degree
of capacity utilization in the paper
industry, which got under way late
in 1999, and the improvement in the
demand for paper products are likely
to continue on into the first part of
2000.
Kemwater’s markets appear stable
and we believe that many of the new
joint ventures that have been established
in recent years will get up to
speed.
The market outlook for Industrial
Chemicals’ products is spottier. Slight
price pressures are affecting the price
of phosphoric acid, but at present
these are offset by the high exchange
rate of the dollar against the euro. The
market prospects for potassium sulphate
are unstable and it is not likely
that production cutbacks affecting this
product can be avoided in 2000. The
calcium chloride market appears stable.
It is also believed that the market
for feed phosphates will hold up,
though detergent phosphates are facing
price pressures.
Kemira Chemicals will continue to
develop all its units, with an accent on
the development of speciality chemicals
for the paper industry as well as
on Kemwater’s new projects and
boosting market share.
Kemira Chemicals has prepared a
new strategic process that seeks to
generate new business and growth.
The process is based on the core competence
approach and on making
wide-ranging use of the company’s expertise
in all areas of development
work. New growth will be sought in
the three synergy areas that are connected
with the unit’s present businesses:
water chemistry expertise, recycling
and environmental chemicals.
Kemira Chemicals’ earnings in 2000
are expected to remain good.
PHOSPHORIC ACID
US Gulf
C&F NW
Europe
94 95 96 97 98 99
USD/t
450
400
350
300
250
200
150
Source: Fertilizer Week
44