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2007-07-12 07:01:04 CEST 2007-07-12 07:01:04 CEST REGULATED INFORMATION Kemira GrowHow Oyj - Corporate ActionPlanned joint venture by Kemira GrowHow Oyj and Terra Industries Inc. for UK operations approved by Competition CommissionThe UK Competition Commission today approved the joint venture planned by Kemira GrowHow Oyj and Terra Industries Inc. to combine the fertiliser and associated process chemicals businesses of both companies in the United Kingdom. The approval is conditional upon the divestment of certain process chemicals businesses - which account for less than 3 per cent of sales of the planned joint venture - as well as upon amendment of certain terms in the agreements for supply of carbon dioxide at Ince. . The planned joint venture is designed to secure a sustainable, long-term base for manufacturing fertiliser and process chemicals in the UK. Both businesses produce ammonium nitrate, which is the main nitrogen fertiliser consumed in the UK. Kemira GrowHow UK Limited is the largest UK producer of compound fertilisers and Terra Nitrogen (UK) Limited is the largest UK producer of ammonium nitrate. The joint venture would provide a complete fertiliser offering for agricultural customers. Both businesses are also leading producers of process chemicals and have well-established and highly-skilled workforces of approximately 400 per company. The joint venture will be owned 50/50 by Kemira GrowHow and Terra and will include the site of Kemira GrowHow at Ince and of Terra on Teesside and Severnside. The annual turnover of the operations included in the joint venture exceeded 500 million euros in 2006. Through the joint venture, Kemira GrowHow and Terra expect to create significant cost and operational synergies that would enhance their ability to service and compete in increasingly challenging markets. . Heikki Sirviö, CEO of Kemira GrowHow, said: "We are pleased with this conclusion, which will enable us to start this joint venture and continue to provide high quality products and services to the agricultural and industrial customers of both our companies." Mike Bennett, President and CEO of Terra, said: "We have worked closely with the Competition Commission and expect to satisfy their conditions soon so that we can start the joint venture. We continue to believe that the proposed joint venture represents the best way forward for our UK business and customers." Kemira GrowHow Oyj Heikki Sirviö CEO For further information please contact: Kemira GrowHow Oyj Kaj Friman, Deputy CEO, CFO Tel. +358 10 215 2180 Distribution: Helsinki Stock Exchange Media About Terra Industries Inc. Terra Industries Inc., with 2006 revenues of $1.8 billion, is a leading international producer of nitrogen products. It employs about 1,200 people in North America and UK and is listed on the New York Stock Exchange. Terra Industries Inc. purchased Terra Nitrogen UK from ICI in 1997. www.terraindustries.com About Kemira GrowHow Oyj Kemira GrowHow Oyj is one of the leading producers of fertiliser and feed phosphates in Europe. Kemira GrowHow develops and markets fertilisers and integrated solutions for crop cultivation, animal feed supplements and chemicals required in various industries. The company has approximately 2,500 employees worldwide and in 2006 net sales were 1.2 million euros. Kemira GrowHow Oyj is listed on the Helsinki Stock Exchange. www.kemira-growhow.com Forward-looking statements This news release may contain forward-looking statements, which involve inherent risks and uncertainties. Statements that are not historical facts, including statements about Terra Industries Inc.'s and/or Kemira GrowHow Oyj's beliefs, plans or expectations, are forward-looking statements. These statements are based on current plans, estimates and expectations. Actual results may differ materially from those projected in such forward-looking statements and therefore you should not place undue reliance on them. In respect of Terra Industries Inc., a non-exclusive list of the important factors that could cause actual results to differ materially from those in such forward-looking statements is set forth in Terra Industries Inc.'s most recent report on Form 10-K and Terra Industries Inc.'s other documents on file with the Securities and Exchange Commission. Neither Terra Industries Inc. or Kemira GrowHow Oyj undertakes any obligation to publicly update or revise any forward-looking statement set out in this announcement, whether as a result of new information, future developments or otherwise. |
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