Kemira has formed a joint venture with an AKD producer in China. Kemira forms a joint venture – Kemira TC Wanfeng Chemicals Yanzhou (“NewCo”) – with Shandong Tiancheng Wanfeng Chemical Technology (“TC Wanfeng”).

Holzchemie

Kemira forms joint venture with TC Wanfeng in China

Kemira has formed a joint venture with an AKD producer in China. Kemira forms a joint venture – Kemira TC Wanfeng Chemicals Yanzhou (“NewCo”) – with Shandong Tiancheng Wanfeng Chemical Technology (“TC Wanfeng”).

NewCo strengthens Kemira’s position as a leading global supplier for the Pulp & Paper industry. NewCo will mainly produce AKD wax and its key raw material fatty acid chloride (FACL). AKD wax, where the main component is based on renewable raw material, is a sizing chemical used in board and paper manufacturing to create resistance against liquid absorption.

NewCo will provide a high-quality AKD wax and will be globally the largest AKD wax manufacturing unit significantly improving Kemira’s AKD wax capacity. NewCo’s site is located in the same chemical park with Kemira’s first AKD wax plant in Yanzhou, China and the proximity of the two sites results in operational synergies. The NewCo site also offers growth opportunities for other relevant chemicals.

In addition, NewCo will produce polyaluminum chloride (PAC) which is a coagulant for water treatment. NewCo will start the production of chemicals in the second half of 2019 after necessary investments and the ramp-up phase are completed.

Kemira has 80% and TC Wanfeng 20% of NewCo. Value of the investment for the 80% share is around Euro 55 million and Kemira has an option to acquire TC Wanfeng’s 20% in the coming years with pre-defined conditions.