22 June 1998 10:43 [Source: ICIS news]
LONDON (CNI)--Kemira Chemicals is to buy Hanwha Chemical's 34 000 tonne/year hydrogen peroxide plant at Ulsan, South Korea, the Finnish company announced Monday.
As part of the deal, Hanwha will continue to supply hydrogen feedstock and utilities to the plant, said Juhani Lindholm, executive vice president of Kemira's pulp and paper chemicals division. Financial details of the deal were not disclosed. The plant's net sales are estimated at $28m.
Kemira's supervisory board will make the final decision within two weeks and the closing date for the deal is within one month, said Lindholm.
Most of the plant's employees will keep their jobs, although details are still under discussion, he said.
Yrjo Sipila, Kemira's president, believes the pulp and paper industries, and other users of hydrogen peroxide, will show strong growth in South Korea and other Asian markets. Kemira is already involved in a 25 000 tonne/year hydrogen peroxide joint venture in Ube, Japan with Ube Industries.
Hanwha, one of South Korea's largest chemical companies, has also said it intends to sell its newly started-up polypropylene business as part of its restructuring. It has already sold its stake in Hanwha-BASF Urethane, and its sister company Hanwha Energy plans to sell its refinery unit.
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