Kemira Oyj - Company Announcement

Kemira and Rockwood to form leading TiO2 joint venture

(Stock Exchange Release)

Kemira Oyj and Rockwood Holdings Inc. have agreed to form a joint
venture that includes both parties' titanium dioxide businesses and
the functional additives business owned by Rockwood. The transaction
values Kemira's TiO2 business in excess of EUR 250 million and will
result in a small capital gain for Kemira. In addition, the
transaction will have a positive cash flow effect and reduce Kemira's
net debt by appr. EUR 120 million. The deal is subject to approval by
the competition authorities and is expected to close during Q3 in
2008.

The new joint venture will include Rockwood's titanium dioxide
pigments and functional additives businesses, including its
production facilities in Duisburg, Germany and Kemira's titanium
dioxide business, including Kemira's titanium dioxide plant in Pori
and Kemira's technical research center specializing in TiO2 products
in Oberhausen, Germany and its US subsidiary, Kemira Specialty, Inc.
Kemira's TiO2 business had a turnover of appr. EUR 230 million in
2007 and operative EBITDA of slightly less than 14 %.

The new specialty titanium dioxide company will be headquartered in
Germany and had a pro forma turnover of appr. EUR 560 million in
2007. The new company will have a yearly production capacity of
around 240 000 tons of titanium dioxide and it will employ around 1
700 employees. Rockwood will own 61 % and Kemira 39 % of the new
joint venture."This joint venture is an excellent way of developing the value of
our titanium dioxide business and it will provide a good platform forsynergy creation e.g. through better capacity utilization" says Harri
Kerminen, CEO of Kemira Group. "The new company will be a highly
specialized titanium dioxide producer with strong market positions in
global niche market segments. It will be the leading provider of
titanium dioxide pigments for textile, packaging ink and cosmetics
industries worldwide", Kerminen continues.

Rockwood Holdings Inc. is a leading global specialty chemicals and
advanced materials company. Rockwood has a worldwide employee base of
approximately 10 000 people and annual net sales of approximately USD
3.1 billion. The company focuses on global niche segments of the
specialty chemicals, pigments and additives and advanced materials
markets.

Kemira Oyj is a global chemicals group with leading positions in
selected customer segments. Kemira's four business areas, Kemira
Pulp&Paper, Kemira Water, Kemira Specialty and Kemira Coatings,
provide customers with complete solutions, expertise and premium
quality products. Kemira serves the pulp & paper industry, water
treatment, paint business and chemical industry. In 2007, Kemira
recorded revenue of approximately EUR 2.8 billion and had a staff of
10 000. Kemira operates in 40 countries.

Kemira Oyj
Timo Leppä, Executive Vice President, Group Communications


For more information, please contact

Harri Kerminen, President and CEO, Kemira Oyj
Tel. + 358 10 862 1801

Hannu Virolainen, President, Kemira Specialty
Tel. + 358 50 500 4001



Kemira is seeking to be a group of global and leading chemical
businesses with unique positions in selected customer segments.
Kemira's four business areas: Kemira Pulp&Paper, Kemira Water, Kemira
Specialty and Kemira Coatings provide customers with complete
solutions, expertise and premium quality products. Kemira serves the
pulp and paper industry, water treatment, paint business and chemical
industry.
In 2007, Kemira recorded revenue of approximately EUR 2.8 billion and
had a staff of 10,000. Kemira operates in 40 countries.


www.kemira.com

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Kemira and Rockwood to form leading TiO2 joint venture