Kemira launches restructure plan, seeks part-sales/jvs

25 October 1999 14:24  [Source: ICIS news]

LONDON (CNI)--Kemira is to restructure its portfolio and seek joint ventures or partial sales for its newly-defined 'non-core' pigments and fertiliser businesses, the Finnish group announced Monday.

Kemira said it expects the restructuring to lead to a positive impact on its financial results in 2000. In the longer term, Kemira wants to reduce the government's stake to below the current level of 53.4%.

The group's non-core businesses were identified as titanium dioxide pigments (Kemira Pigments) and nitrogen fertilisers (Kemira Agro). Kemira said of its plans for these businesses: "Joint venture or ownership structure arrangements will be sought in order to improve the cashflow generation potential".

In addition, Kemira's restructuring plan calls for its Tikkurila CPS business to separate its colour processing and paints activities through either a partial sale or a stock exchange listing.

Tauno Pihlava, who will become chief executive officer on 1 January, said: "With these measures to be taken we shall be able to release investment capital to be used on Kemira's growth areas, and our business portfolio will be more clearly defined."

He added: "The new group structure will channel resources to targeted area of growth, and will improve the efficiency of our operation."

Targeted areas for growth are: pulp and paper chemicals; water treatment chemicals; paints and coatings; specialty fertilisers; and industrial chemicals.

Kemira said: "As a result of these actions, Kemira's board expects to see an improvement in profitability and a lower level of cyclical volatility in operating income."

By: Patrick Reynolds
+44 208 652 3214

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