Kemira forms joint venture called NewCo for paper-sizing chemicals
December 3, 2018 – Kemira, the global chemicals company, has formed a joint venture with Shandong Tiancheng Wanfeng Chemical Technology, an alkyl ketene dimer (AKD) producer in China.
December 3, 2018 By P&PC Staff
The venture is called Kemira TC Wanfeng Chemicals Yanzhou, or NewCo, and Kemira owns 80 per cent at a valued investment of EUR 55 million.
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.
NewCo will provide a high-quality AKD wax and will be globally the largest AKD wax manufacturing unit, significantly improving Kemira’s AKD wax capacity. NewCo’s site is located in the same chemical park with Kemira’s first AKD wax plant in Yanzhou, China. The NewCo site also offers growth opportunities for other relevant chemicals.
In addition, NewCo will produce polyaluminum chloride (PAC), which is a coagulant for water treatment. NewCo will start the production of chemicals in the second half of 2019 after necessary investments and the ramp-up phase are completed.
“The joint venture is a good strategic fit,” says Kim Poulsen, president of Kemira’s pulp and paper division. “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.”
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