Feb 22, 2011

Kemira to Build Two New Coagulant Plants in Europe

Plants will use hydrochloric acid byproduct from Bayer to produce coagulants

Kemira will strengthen its European manufacturing network by constructing two new coagulant plants in Germany and Spain. The investment is €40 million and the plants are expected to be operational in 2012.
Kemira entered a strategic partnership with Bayer MaterialScience through which it will purchase hydrochloric acid, a byproduct of Bayer’s polyurethane production, to produce coagulants for use in various water treatment applications, including drinking water and wastewater treatment.
Kemira will build the new coagulant plants next to Bayer MaterialScience’s isocyanate production plants in Dormagen, Germany, and Tarragona, Spain. At the same time, Kemira will close an existing coagulant plant in Europoort, the Netherlands. In Spain, the coagulant manufacturing in Tarragona will be moved into the new plant in the Bayer Industrial Park. Kemira has informed the works councils about the restructuring plan and started the co-determination negotiations in Spain and the Netherlands. The impact on personnel will be minor, as most employees will be able to transfer to other positions within Kemira.
"Kemira and Bayer have a long history of working together. We are extremely pleased to enter this partnership, as it strengthens our position in western and southern Europe, securing a long-term, cost-efficient access to hydrochloric acid. Coagulants are one of Kemira’s core product lines and ensuring cost-efficient supply of raw materials is one of our key strategic objectives," said Harri Kerminen, president and CEO of Kemira.
"Bayer MaterialScience is pleased to be entering the strategic partnership with Kemira," said Tony Van Osselaer, the company’s head of industrial operations and a member of its executive committee. "This partnership provides an environmental benefit, as we will reduce the current transport of our HCl from roads and rail networks. By positioning these new facilities next to our manufacturing units, everyone benefits and it gives us a perfect outlet for HCl of our planned TDI (toluene diisocyanate) facility in Dormagen."