Kemira Oyj - Company Announcement

Kemira's savings program on track, further savings potential identified

Kemira Group
Stock Exchange Release
December 18, 2008 at 9.25 am (CET+1)

Kemira launched a global cost savings program in mid-year 2008 to
improve profitability. Kemira will save more than EUR 50 million per
annum with this program. Kemira has identified further savings
potential that will lead to additional annual EUR 10 million savings.
Savings are expected to realize during 2009 and 2010.

Due to the cost savings program Kemira will book approximately EUR 86
million one-time items for the last quarter of 2008 of which less
than half have cash impact during 2008 and 2009. About 55% of the
items are related to cuts in production capacity, closing of sites
and termination of unprofitable businesses. Kemira has closed and
will close further production capacity with low profitability in
polymer and paper chemicals. Costs related to headcount reduction and
organizational restructuring represent about 30% of the costs.
Functional activities will be centralized in order to reduce cost and
these changes stand for approximately 15% of the cost.

Both the savings and one-time items are related to the new Kemira
business structure excluding Tikkurila."We can say in hindsight that we started the cost savings program at
the right time. Our actions behind the one-time items will improve
our profitability in the near future. Volatility on the financial
market connected with the fast weakening of the product market has
forced everyone in the business to drastic measures. Business
environment in Q4 has been more ruthless than anticipated and
visibility to future is shorter than ever before", says Harri
Kerminen, President and CEO of Kemira.

Kemira Oyj
Timo Leppä, Executive Vice President, Group Communications


For more information, please contact

Kemira Oyj
Jyrki Mäki-Kala, CFO
Phone: +358 40 534 1060



Kemira will be a focused company, the best in water and fiber
management chemistry.

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

Attachments:

Link to the Release (Pdf).pdf