Renowned chemical giant Kemira has recently announced that it has inked an agreement to set up a joint venture (JV) with a South Korean chemical company Yongsan Chemicals. Reportedly the new company will be registered as Kemira Yongsan Chemicals Co. Ltd in Ulsan, Republic of Korea.
According to sources familiar with the matter, the new company will produce cationic monomer Q9, dry polyacrylamide, and other various chemicals that are used for drainage and retention in packaging & paper production, sludge dewatering, and wastewater treatment.
It has been reported that Kemira will be providing its customers with premium quality dry polyacrylamide that are supported by backward integrating the high-quality cationic monomer Q9 (AMDs). This is further set to ensure a sustainable and cost-effective manufacturing capability that will fulfill customer requirements and specific needs, cite sources.
Nichlas Kavander, Senior Vice President, Pulp & Paper, Asia Pacific, was quoted saying that the new joint venture will accelerate company’s strategy and strengthen its position as a leading global polymer producer. He further added that the JV supports the company’s future growth, especially in Asia Pacific region by providing additional polymer capacity and securing capacity utilization & customers with better global delivery capability.
If industry experts are to be believed, the new joint venture in South Korea will be a significant step forward in expanding Kemira’s reach in the Asia Pacific market. The JV is further expected to be an important addition in driving lucrative growth in the region as well as balancing the robust demand for Kemira’s dry polymers across the globe.
As reported by Bloomberg, Kemira will hold a minority share of 35%, and will make a multi-million investment in the newly established company.
Kemira Oyj operates as a global chemical company in Finland & other European countries, the Asia Pacific, the Americas, the Middle East, and Africa. The company’s focus is on oil & gas and water treatment and pulp & paper. In 2017, Kemira recorded an annual revenue of more than EUR 2.5 billion, with nearly 4,732 employees.