Kemira Oyj - Inside information

Kemira forms joint venture with fatty acid chloride producer in China

Kemira Oyj
Stock Exchange Release
September 29, 2017 at 2.00 pm (CET+1)

Kemira forms joint venture with fatty acid chloride producer in China

Kemira has signed an agreement to form a joint venture - Kemira TC Wanfeng
Chemicals Yanzhou ("NewCo") - with Shandong Tiancheng Wanfeng Chemical
Technology ("Tiancheng"). NewCo will strengthen Kemira's position as the global
leader in Pulp & Paper industry and supports the growth of water treatment.

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. Kemira is the global market leader in sizing
chemicals. In addition, NewCo plans to produce polyaluminum chloride (PAC) which
is a coagulant for water treatment.

Through the backward integration Kemira expands its position in the value chain.
NewCo will provide a high-quality wax in the market at cost leadership position.
NewCo creates globally the largest and most integrated AKD wax manufacturing
unit and almost doubles Kemira's AKD wax capacity. NewCo's site is located in
the same chemical park with Kemira's plant in Yanzhou, China and the proximity
of the two sites results in savings from logistics costs. NewCo site also offers
growth opportunities for other relevant chemicals.

"The joint venture is a good strategic fit. We strengthen our position in the
market with a quality asset and secure our supply of the key raw material for
AKD wax. With the newly built site, we ensure our capacity utilization and
support our customers better with our global delivery capability. At the same
time, this enables us to grow even faster in APAC", says Kim Poulsen, President,
Pulp & Paper.

Kemira will have 80% and Tiancheng 20% of NewCo. Value of the investment for the
80% share is around EUR 55 million and Kemira will have an option to acquire
Tiancheng's 20% in the coming years with pre-defined conditions.

The deal is subject to certain closing conditions and is expected to close in
the first half of 2018.

For more information, please contact

Kemira Oyj
Kim Poulsen, President, Pulp & Paper
Tel. +358 50 387 2063

Olli Turunen, Vice President, Investor Relations
Tel.  +358 10 862 1255




Kemira is a global chemicals company serving customers in water intensive
industries. We provide expertise, application know-how and chemicals that
improve our customers' product quality, process and resource efficiency. Our
focus is on pulp & paper, oil & gas and water treatment. In 2016, Kemira had
annual revenue of around EUR 2.4 billion and 4,800 employees. Kemira shares are
listed on the Nasdaq Helsinki Ltd.
www.kemira.com




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